ACTION

A. ROLL CALL

B. APPROVAL OF MINUTES - April 6, 2017 Approve

C. COMMITTEE DISCUSSION ITEMS

1. Assembly Bill 805 (Sharon Cooney) Informational

2. Fare Collection Update (Sharon Cooney) Informational

D.

E.

F.

G. PUBLIC COMMENTS

H. NEXT MEETING DATE: June 1, 2017

I. ADJOURNMENT

COMMITTEE MEMBER COMMUNICATIONS AND OTHER BUSINESS

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM

REVIEW OF SANDAG TRANSPORTATION COMMITTEE AGENDA

REVIEW OF DRAFT May 11, 2017 BOARD AGENDA

EXECUTIVE COMMITTEE

Possible

Action

Executive Conference Room

May 4, 2017

RECOMMENDED

Review of SANDAG Transportation Committee Agenda and discussion regarding any

items pertaining to MTS, San Diego Transit Corporation, or San Diego Trolley, Inc.

Relevant excerpts will be provided during the meeting.

Agenda

9:00 a.m.

1255 Imperial Avenue, #1000 San Diego, CA 92101-7490 619.231.1466 FAX 619.234.3407

-1-

DRAFT

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM EXECUTIVE COMMITTEE

1255 Imperial Avenue, Suite 1000 San Diego, CA 92101

April 6, 2017

MINUTES A. ROLL CALL

Chairman Mathis called the Executive Committee meeting to order at 9:02 a.m. A roll call sheet listing Executive Committee member attendance is attached. CHAIRMAN’S COMMENT Chairman Mathis stated that staff is requesting to add a Closed Session Item (C3) to the agenda. He said that a motion and vote needs to be taken to allow this item to be included in the agenda. Action Taken Mr. McClellan moved to allow agenda item C3 to be included in the agenda. Mr. Roberts seconded the motion, and the vote was 5 to 0 in favor.

B. APPROVAL OF MINUTES

Ms. Rios moved for approval of the minutes of the February 2, 2017, MTS Executive Committee meeting. Mr. McClellan seconded the motion, and the vote was 5 to 0 in favor.

C. COMMITTEE DISCUSSION ITEMS

1. Assembly Bill 805 (Sharon Cooney) Sharon Cooney, Chief of Staff, provided a presentation on Assembly Bill (AB) 805. She reviewed the details of the bill including changes being proposed for the San Diego Association of Governments (SANDAG), North County Transit District (NCTD) and MTS. Ms. Cooney discussed the proposed changes to MTS including authorizing the Board to levy a sales tax for transit purposes; maintaining a 15 member Board; eliminating the Board-appointed chair and making the Mayor of the most populous city the chair; adding a second Chula Vista Board member; and requiring that all primary Board members be Mayors of the member cities (except for the three additional San Diego representatives and the second Chula Vista representative would be councilmembers). She reviewed the proposed changes to the voting stating that all Board actions would require a weighted vote of members present; removing the cap on the City of San Diego’s weighted vote; removing the requirement that an affirmative vote must achieve 51% plus 3 separate jurisdictions; and splitting the Chula Vista weighted vote evenly between the City’s two representatives. Ms. Cooney reviewed the items in the bill that still need clarification. She also reviewed the next steps for the bill and stated that the bill has been triple-referred to the committees on Local Government, Transportation, and Appropriations. Ms. Cooney reviewed the potential options that the Executive Committee could recommend to the Board for action and asked for feedback and direction.

Executive Committee Meeting – DRAFT MINUTES April 6, 2017 Page 2 of 6

PUBLIC COMMENTS

Diane Takvorian – Ms. Takvorian commented on behalf of the Environmental Health Coalition. She stated that they are in support of AB 805 and they believe that it will help bring additional revenue to MTS. Ms. Takvorian said that this will give MTS greater control and the ability to improve and grow the transit system in San Diego. She said that they would recommend postponing any action at this time and meeting with the author to get the clarification needed for the appropriate representation. Chairman Mathis asked Ms. Takvorian what her thoughts were on the proposed governance changes. Ms. Takvorian said that discussions should be made with the author for clarification purposes, but she believes a per capita weighted vote seems fair. She also noted that they do not want to see the other cities silenced or have their vote diminished, but she does believe that a per capita weighted vote seems fair.

Carolina Rodriguez-Adjunta – Ms. Rodriguez-Adjunta commented on behalf of the Climate Action Campaign. She said that they are in support of AB 805 and for MTS to run its own sales tax measures to help put more resources into improving transit and the climate. She urged the committee to hold off on taking any action at this time and to continue discussions with the author to get needed clarifications.

Jack Shu – Mr. Shu commented on behalf of the Cleveland National Forest Foundation. He commented that SANDAG is set up differently than other Metropolitan Planning Organizations (MPOs) around the state and that causes it to suffer. He said that AB 805 looks to correct issues with SANDAG by making it a more representative MPO. Mr. Shu asked for the committee to look to the future and how this bill addresses the changing transportation needs in the region. He stated that people will better know and recognize the representation of the SANDAG Board by having Mayors sit on the Board.

Julio Rivera – Mr. Rivera stated that he is a field representative for Assemblymember Gonzalez Fletcher. He read a letter from the Assemblymember which is attached in the final meeting packet. In summary, the letter stated that the Assemblymember is requesting for the committee to hold off on taking a position on the bill until it can be amended to incorporate feedback she has received. She also discusses the desire to provide MTS the ability to approach voters for a transit-related tax increase. She also thanked the members of the Board who have reached out to her with questions and encourages more discussion to help amend the bill in the future.

Michelle Krug – Ms. Krug commented that as a daily transit user, she supports the bill and the fact that it gives MTS the authority to put out its own tax measure for transit purposes.

Gretchen Newsom – Ms. Newsom commented on behalf of IBEW 569. She stated that they are in support of the bill and encourage the committee to delay any action until discussions are made with the Assemblymember regarding clarifications and questions about the bill. She said that they would like to have the members of IBEW 569 have access to a great transit system.

Randy Van Vleck – Mr. Van Vleck commented on behalf of the City Heights Community Development Corporation. He stated that they would like to see MTS empowered to pursue its own sales tax measure to receive more funding to put towards improved

Executive Committee Meeting – DRAFT MINUTES April 6, 2017 Page 3 of 6

transit service. He encouraged the committee to not take action at this time and to continue the dialogue with the author to evolve the bill.

COMMITTEE COMMENTS

Mr. Roberts commented that he is in support of giving MTS the authorization to issue its own tax measure. He stated that he is not in support of the proposed governance changes. Mr. Roberts said that he would make a motion to support the sales taxing proposals and take opposition to the other proposals in the bill related to governance changes.

Ms. Gomez commented that she does not have a position on the bill at this time and would recommend that the committee have a neutral position and seek clarification on the questions brought up by staff.

Ms. Rios commented that she agrees the committee stay neutral at this time and seek clarification with the author. She stated that she spoke with the author and voiced concerns related to the governance structure. Ms. Rios noted that the author has heard from other people regarding the governance structure issue too. She stated that she would make a motion to delay bringing this item to the Board and seek clarification from the author and possible amendments to the bill related to MTS. Ms. Gomez stated that she would second that motion. Mr. Jablonski commented that staff will need more specific direction related to the substance of the bill and what position the policy makers have on requesting amendments. Ms. Gomez stated that she would be in support of taking this item to the full Board for further discussion and clarify what motion the Board would like to take.

Mr. McClellan commented that he believes the other member cities will not support the governance proposals made in the bill.

Ms. Rios commented that this item should be brought to the Board for further discussion and for clarification on how staff should move forward.

Actions Taken Ms. Rios made a motion to bring this item to the Board for additional clarification for amendments and request for Assemblymember Gonzalez Fletcher to be invited to attend the Board meeting. Ms. Gomez seconded the motion and the vote was 2 to 3 with Ms. Gomez and Ms. Rios in favor and Mr. Mathis, Mr. McClellan and Mr. Roberts in opposition. Mr. Roberts then moved to recommend that the Board oppose Assembly Bill 805 (Gonzalez Fletcher) unless amended to remove everything related to MTS except the sales tax authority. Mr. McClellan seconded the motion, and the vote was 3 to 2 with Mr. Mathis, Mr. McClellan and Mr. Roberts in favor and Ms. Gomez and Ms. Rios in opposition.

2. Joint Development Properties Inventory Update (Tim Allison) Tim Allison, Manager of Real Estate Assets, provided a presentation on the inventory of joint development properties. He discussed the details of the following highlighted

Executive Committee Meeting – DRAFT MINUTES April 6, 2017 Page 4 of 6

properties: Grantville Trolley Station, Euclid Avenue Transit Station, Iris Avenue Transit Station, 14th and Imperial, and the Riverwalk property. Mr. Allison reviewed the details of the Grantville property and discussed next steps and direction related to this property including to hire a development services consultant to assist staff with procuring a developer to construct a mixed use project at the station; investigate possible development partnerships with surrounding owners; coordinate potential SDSU involvement; and bring site specific decisions back to the Executive Committee for direction. Mr. Allison reviewed the details of the Euclid Avenue Transit Station property and discussed next steps and direction related to this property including to negotiate an agreement with Jacobs Center for Neighborhood Innovation (JCNI) to lead a joint development procurement for the Euclid Station in coordination with JCNI assets; and bring site specific decisions back to the Executive Committee for direction. Mr. Roberts commented that staff should discuss options with JCNI, but not commit to anything to leave options open to go out to bid for development. He reviewed the details of the Iris Avenue Transit Station property and discussed next steps and direction related to this property including to continue vetting the project concept; and return to the Executive Committee with a detailed presentation for further direction to formally consider unsolicited offers. Mr. Allison reviewed the details of the 14th Street and Imperial Avenue property and discussed next steps and direction related to this property including to conduct a planning study for Transit Center expansion alternatives; and conduct a development feasibility study on various build scenarios including any potential up-zoning. Mr. Roberts commented that staff should move forward on trying to rezone this property and to also focus on the Imperial Avenue Division (IAD) property. Mr. Jablonski noted that staff will bring the IAD property study results back to the Executive Committee for review and discussion. Ms. Landers reviewed the details of the Riverwalk property and discussed next steps related to this property including that the golf course lease rent requirement starts December 2017 and the golf course tenant has rights to terminate the lease with one month notice; and that there has been renewed activity on the Levi-Cushman Specific Plan Project Area.

Action Taken No action taken. Informational item only.

D. REVIEW OF DRAFT April 13, 2017 BOARD AGENDA (TAKEN BEFORE CLOSED SESSION) Recommended Consent Items 6. Investment Report - February 2017 7. Lease Agreement with Infinity Investments, LLC at 1695 Main Street, San Diego

Action would authorize the Chief Executive Officer (CEO) to execute a Lease Agreement with

Infinite Investments, LLC for a lease at 1695 Main Street, San Diego (MTS Doc. No. G2002.0-

17).

Executive Committee Meeting – DRAFT MINUTES April 6, 2017 Page 5 of 6 8. Amended and Restated Lease Agreement with San Diego Sports Entertainment Center, LLC at

1699 Main Street, San Diego Action would authorize the Chief Executive Officer (CEO) to execute an amended and restated

lease agreement with San Diego Sports Entertainment Center, LLC for a lease at 1699 Main Street, San Diego (MTS Doc. No. L1221.3-15).

9. California Office of Emergency Services (CalOES) Designation of Applicant's Agent Resolution

for Non-State Agencies (CalOES Form 130) Action would adopt the Designation of Applicant's Agent Resolution for Non-State Agencies

(CalOES Form 130) to authorize the Chief Executive Officer (CEO), or designated representative, to execute all required documents for the purpose of obtaining certain federal financial assistance under Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act.

10. Batteries for Buses - Contract Award Action would: (1) Authorize the Chief Executive Officer (CEO) to execute MTS Doc. No.

B0665.0-17 with Battery Systems, Inc., and B0667.0-17 with Battery Power, Inc., for batteries for buses for three (3) base years with two (2) 1-year options; and (2) Authorize the CEO to exercise option years, in his discretion.

11. Americans with Disabilities Act (ADA) Paratransit Service - Contract Amendment No. 3 "Action would authorize the Chief Executive Officer (CEO) to: (1) Execute Amendment No. 3 to

MTS Doc. No. G1205.0-10 (in substantially the same format as Attachment A) with First Transit, Inc. (FTI) to exercise option period 2 (contract years 8 and 9); (2) Reallocate $1,271,139.00 originally encumbered and included under Amendment No. 1 from the Mobile Data Terminal System (MDTS) and OnBoard Vehicle Video Event Recorder (OBVVER) services to the operational budget; and (3) Increase the contract expenditure authority by $7,777,264.86 to support services needed for increased ridership and demands in ADA/paratransit services.

12. Federal Legislative Representation - SANDAG Partial Assignment Action would authorize the Chief Executive Officer (CEO) to execute the Partial Assignment 1 of

Agreement for San Diego Association of Governments (SANDAG) Federal Representation Services for a fifty (50) month period effective May 1, 2017.

13. Contract with the City of National City for Taxicab Administration Action would authorize the Chief Executive Officer (CEO) to enter into an agreement for Taxicab

Administration with the City of National City in substantially the same format as in Attachment A. 14. Drug and Alcohol Policy for All San Diego Metropolitan Transit System (MTS) Employees Action would adopt Resolution No. 17-6, which will implement MTS's updated Drug and Alcohol

Policy, in order to comply with Federal Transit Administration regulations and further public safety.

15. Text Messaging Services for Go MTS Short Code Action would: (1) Ratify previous Purchase Order (PO) 4500001379 award of $79,750.00 with

MIS Sciences, Inc. which was previously issued under MTS's Board Policy Section 41.4.2 "Stand-Alone Purchase Orders"; and (2) Authorize the Chief Executive Officer (CEO) to execute a sole source extension to the PO with MIS Sciences, Inc. (MIS Sciences) through July 31, 2017 and increase capacity by $55,500.00 for a revised total PO value of $135,250.00.

Executive Committee Meeting – DRAFT MINUTES April 6, 2017 Page 6 of 6 E. REVIEW OF SANDAG TRANSPORTATION COMMITTEE AGENDA (TAKEN BEFORE

CLOSED SESSION)

There was no SANDAG Transportation Committee agenda discussion.

F. COMMITTEE MEMBER COMMUNICATIONS AND OTHER BUSINESS (TAKEN BEFORE CLOSED SESSION)

There was no Committee Member Communications and Other Business discussion.

G. PUBLIC COMMENTS (TAKEN BEFORE CLOSED SESSION) There were no Public Comments. The Executive Committee convened for Closed Session at 11:10 a.m.

C3. CLOSED SESSION - CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to California Government Code Section 54956.8 Property: Assessors Parcel Number (APN) 451-690-55-00 (Southeasterly of Vine Street and California Street, San Diego) Agency Negotiators: Paul Jablonski, Chief Executive Officer; Karen Landers, General Counsel; and Tim Allison, Manager of Real Estate Assets Negotiating Parties: San Diego Gas and Electric Company Under Negotiation: Price and Terms of Payment

The Executive Committee reconvened from Closed Session at 11:23 a.m.

Oral Report on Final Actions Taken in Closed Session

C3. The Executive Committee received a report from staff and gave instructions. H. NEXT MEETING DATE

The next Executive Committee meeting is scheduled for May 4, 2017, at 9:00 a.m. in the Executive Committee Conference Room.

I. ADJOURNMENT

Chairman Mathis adjourned the meeting at 11:23 a.m.

__________________________ Chairman Attachment: A. Roll Call Sheet

MEETTNG OF (DATE)

RECESS

CLOSED SESSION

EXECUTIVE COMMITTEESAN DIEGO METROPOLITAN TRANSIT SYSTEM

ROLL CALL

Aoril6.2017

BOARD MEMBER

COLE

11:10 a.m.

MATHIS

MCCLELLAN

RIOS

n (Gomez)

ROBERTS

x

CALL TO ORDER (T|ME)

Transportation Committee Reo Slot (Mathis)

RECONVENE

RECONVENE

ADJOURN

x

(Alternate)

X (Salas)

SIGNED BY THE CLERK OF THE BOARD:

(McWhirter)

x

x

CONFIRMED BY THE GENERAL COUNSEL:

(Cox)

PRESENT(TrME ARRTVED)

n

!

11:23 a.m.

9'O2 a.m

9:02 a.m.

11:23 a.m.

n

9:02 a.m

9:02 a.m.

9:02 a.m.

ABSENT(TrME LEFT)

9:02 a.m.

11:23 a.m.

11:23 a.m.

11:23 a.m.

11:23 a.m.

11:23 a.m.

Agenda Item No. C1

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM EXECUTIVE COMMITTEE

May 4, 2017

SUBJECT:

ASSEMBLY BILL 805 (SHARON COONEY)

INFORMATIONAL ONLY

Budget Impact

None. DISCUSSION:

On February 15, 2017, Assembly Member Gonzalez Fletcher introduced Assembly Bill

805: San Diego Consolidated Transportation Agency: governance. AB 805 made minor,

non-substantive changes to San Diego Association of Governments’ (SANDAG’s)

enabling legislation and was considered a placeholder for future substantive legislation.

On March 23, 2017, and then again on April 6, 2017, AB 805 was amended to include

substantive changes to SANDAG, MTS and North County Transit District (NCTD)

governance and voting. The Board of Directors received a report on the bill at its April

13, 2017 meeting and approved, by a weighted vote, to support the bill with amendments

as discussed at the meeting related to the chair and vice chair, the weighted vote, and

the mayoral requirement for membership.

Following the Board of Directors meeting on April 13, amendments to AB 805 were published on April 20 (Attachment A). The substantive changes made pertaining to MTS include:

The City of San Diego would continue to have four Board Members, one of which must be the Mayor and the other three must be Councilmembers.

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The City of Chula Vista would have two members, one of which must be the Mayor and the other must be a Councilmember.

Elimination of an outside Board-appointed chair. The chairperson would be selected by a two-thirds vote of the Board. The chairperson would be selected from one of the current sitting Board members and serve a four year term.

The mayoral representative requirement for the Cities of Coronado, El Cajon, Imperial Beach, La Mesa, Lemon Grove, National City, Poway and Santee was removed, allowing the member to be appointed by each city council.

The April 20, 2017 amendments did not include amendments related to weighted voting; however the Assemblywoman’s legislative staff has indicated they will include changes related to voting structure in the next amendments.

AB 805 has passed out of the Assembly Local Government Committee and the Assembly Transportation Committee. The bill is presently residing in the Assembly Appropriations Committee.

Staff will provide a presentation to the Executive Committee regarding the recent amendments and status of the bill.

/s/ Paul C. Jablonski Paul C. Jablonski Chief Executive Officer Key Staff Contact: Sharon Cooney, 619.557.4513, Sharon.Cooney@sdmts.com Attachments: A. AB 805, as amended (Gonzalez Fletcher)

AMENDED IN ASSEMBLY APRIL 20, 2017

AMENDED IN ASSEMBLY APRIL 6, 2017

AMENDED IN ASSEMBLY MARCH 23, 2017

california legislature—2017–18 regular session

ASSEMBLY BILL No. 805

Introduced by Assembly Member Gonzalez Fletcher

February 15, 2017

An act to amend Sections 120050.2, 120051, 120051.6, 120102.5,125050, 125102, 132351.1, 132351.2, 132351.4, 132352.3, 132354.1,and 132360.1 of, to add Article 11 (commencing with Section 120480)to Chapter 4 of Division 11 of, to add Article 9 (commencing withSection 125480) to Chapter 4 of Division 11.5 of, and to repeal Sections120050.5 and 120051.1 of, the Public Utilities Code, relating totransportation.

legislative counsel’s digest

AB 805, as amended, Gonzalez Fletcher. County of San Diego:transportation agencies.

(1)  Existing law provides for the consolidation of certain regionaltransportation planning, programming, and related functions in SanDiego County from various existing agencies including the San DiegoAssociation of Governments (SANDAG), the San Diego MetropolitanTransit Development Board, also known as the San Diego MetropolitanTransit System (MTS), and the North County Transit District (NCTD).

Existing law provides for the consolidated agency, commonly knownas SANDAG, to be governed by a board of directors of 21 city andcounty members selected by the governing body of each memberagency.

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This bill would require the mayor of each city to serve on the boardof directors, except in the case of the City of San Diego, where themayor and the president of the city council would serve. of the City ofSan Diego to serve on the board. The bill would require the chairpersonchair of the County of San Diego board of supervisors Board ofSupervisors to serve on the board as one of the 2 members on the boardfrom the county board of supervisors supervisors. The bill would alsorevise the selection of alternate members of the board.

Existing law, in order for the SANDAG board to act on any item,generally requires a majority vote of the members present on the basisof one vote per agency as well as a weighted vote pursuant to a specifiedprocess, except in the case of consent items.

This bill would instead require a majority of the weighted vote of theboard members present in order for the board to act on any item. Thebill would also modify the weighted vote process.

Existing law provides for SANDAG to have 4 standing policyadvisory committees named the executive, transportation, regionalplanning, and borders committees.

This bill would additionally provide for an audit committee withspecified responsibilities, including the appointment of an independentperformance auditor. The bill would require SANDAG to submit anannual report to the Legislature, developed by its transportationcommittee, that outlines various matters related to public transit.

Existing law provides for the consolidated agency to prepare a regionalcomprehensive plan containing various elements, as specified.

This bill would require the regional comprehensive plan to addressgreenhouse gas emissions reduction rules and regulations adopted bythe State Air Resources Board and associated emissions limits. The billwould also require the plan to identify disadvantaged communities. Thebill targets set by the State Air Resources Board and would require theplan to include strategies relative to those matters. that provide for modeshift to public transportation.

(2)  Existing law creates MTS and NCTD, with various public transitresponsibilities in the southern and northern parts of the County of SanDiego, respectively. Existing law provides for MTS to be governed bya board of 15 members, while NCTD is governed by a board of 9members, with each board generally consisting of city and countyrepresentatives selected by member agencies. Existing law providesthat the chairperson of the MTS board is a resident of the County ofSan Diego selected by the board, as specified.

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— 2 —AB 805

This bill would generally require the city representatives on eachboard to be the mayor of the city, except in the case of the City of SanDiego, where 3 of the 4 members other than the mayor would be selectedby the city council. The bill would provide for the city council of theCity of Chula Vista to appoint a 2nd member. The bill would providefor the chairperson of the MTS board to alternate between the mayorsof the 2 largest cities. This bill would require one of the 4 San DiegoCity Council members on the MTS board to be the mayor. The bill wouldgrant to the City of Chula Vista a 2nd member, who would be the mayor.The bill would require the chairperson of the MTS board to be selectedby the board. The bill would require the member of the board ofsupervisors to be the member representing the district with the greatestpercentage of its area within the incorporated area of the county withinthe MTS jurisdiction. The bill would also revise the process for selectingalternate members of the MTS board.

Existing law generally provides that official acts of the MTS or NCTDboard require the affirmative vote of the majority of the members ofthe board, except that a weighted vote of the MTS board may berequested pursuant to a specified process.

This bill would create a similar weighted voting process for NCTD.The bill would require all official acts of the MTS or NCTD boards torequire the affirmative vote of the majority of the weighted vote of theboard members present.

Existing law authorizes various transportation agencies, includingSANDAG, to impose a transactions and use tax for transportationpurposes within its jurisdiction, subject to approval of 2⁄3 of the votersand various other requirements. Existing law provides for issuance ofbonds backed by these tax revenues, as specified.

This bill would additionally authorize MTS and NCTD to individuallyimpose a transactions and use tax within their respective portions ofthe County of San Diego, with revenues to be used for public transitpurposes, as specified, serving their jurisdictions, and to issue bondsbacked by these tax revenues, subject to similar requirements.

(3)  By imposing additional requirements on local agencies, this billwould impose a state-mandated local program.

The California Constitution requires the state to reimburse localagencies and school districts for certain costs mandated by the state.Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandatesdetermines that the bill contains costs mandated by the state,

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AB 805— 3 —

reimbursement for those costs shall be made pursuant to the statutoryprovisions noted above.

Vote: majority. Appropriation: no. Fiscal committee: yes.

State-mandated local program: yes.

The people of the State of California do enact as follows:

line 1 SECTION 1. Section 120050.2 of the Public Utilities Code is line 2 amended to read: line 3 120050.2. The board consists of 15 members selected as line 4 follows: line 5 (a)  One member of the County of San Diego Board of line 6 Supervisors, appointed by the board of supervisors. line 7 (b)  The mayors of One member of each city council appointed line 8 individually by the city councils of the Cities of Chula Vista, line 9 Coronado, El Cajon, Imperial Beach, La Mesa, Lemon Grove,

line 10 National City, Poway, San Diego, and Santee. line 11 (c)  Three Four members of the City Council of the City of San line 12 Diego and one member San Diego, one of whom shall be the line 13 mayor, and two members of the City Council of the City of Chula line 14 Vista, each Vista, one of whom shall be the mayor, each appointed line 15 by their respective city council. line 16 (d)  The mayors of the largest city and the second largest city line 17 shall alternate between serving as the chairperson and vice line 18 chairperson of the board every four years. line 19 (d)  The chairperson of the board shall be selected by a line 20 two-thirds vote of the board, a quorum being present. The line 21 chairperson shall serve for a term of four years, except that he or line 22 she is subject to removal at any time by a two-thirds vote of the line 23 board, a quorum being present. line 24 SEC. 2. Section 120050.5 of the Public Utilities Code is line 25 repealed. line 26 SEC. 3. Section 120051 of the Public Utilities Code is amended line 27 to read: line 28 120051. The member of the board of supervisors appointed line 29 pursuant to subdivision (a) of Section 120050.2 shall represent the line 30 supervisorial district with the greatest percentage of its area within line 31 the incorporated area of the County of San Diego within the area line 32 under the jurisdiction of the transit development board as defined line 33 in Section 120054.

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— 4 —AB 805

line 1 SEC. 4. Section 120051.1 of the Public Utilities Code is line 2 repealed. line 3 SEC. 5. Section 120051.6 of the Public Utilities Code is line 4 amended to read: line 5 120051.6. The alternate members of the board shall be line 6 appointed as follows: line 7 (a)  The County of San Diego Board of Supervisors shall appoint line 8 a county supervisor, not already appointed under Section 120051, line 9 who represents one of the two supervisorial districts with the

line 10 greatest percentage of its area within the incorporated area of the line 11 County of San Diego within the area, not already appointed under line 12 Section 120051, under the jurisdiction of the transit development line 13 board as defined in Section 120054 120054, to serve as an alternate line 14 member of the transit development board. line 15 (b)  The city councils of the cities specified in subdivision (b) line 16 or (c) of Section 120050.2 shall each individually appoint a line 17 member of their respective city councils not already appointed line 18 pursuant to subdivision (b) or (c) of Section 120050.2 to serve as line 19 an alternate member of the transit development board for each line 20 member of the city on the board. line 21 (c)  At its discretion, a city council or the county board of line 22 supervisors may appoint a second alternate member, in the same line 23 manner as first alternates are appointed, to serve on the board in line 24 the event that neither a member nor the alternate member is able line 25 to attend a meeting of the board. line 26 (d)  An alternate member and second alternate member shall be line 27 subject to the same restrictions and shall have the same powers, line 28 when serving on the board, as a member. line 29 SEC. 6. Section 120102.5 of the Public Utilities Code is line 30 amended to read: line 31 120102.5. (a)  A majority of the members of the board line 32 constitutes a quorum for the transaction of business. All official line 33 acts of the board require the affirmative vote of the majority of the line 34 weighted vote of the members present. However, any reference in line 35 this division to a two-thirds vote of the members of the board shall line 36 be deemed to mean the affirmative vote of two-thirds of the line 37 weighted vote of the members present. line 38 (b)  In the case of a weighted vote, there shall be a total of 100 line 39 votes. Each member agency shall have that number of votes line 40 annually determined by the following apportionment formula,

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AB 805— 5 —

line 1 provided that each agency shall have at least one vote, and that line 2 there shall be no fractional votes: line 3 (1)  Compute, consistent with subdivision (d), the total population line 4 of the cities and the county, and compute the percentage of this line 5 total for each agency. line 6 (2)  Boost percentage fractions in the case of each agency where line 7 the total is less than one, to one, and then add to that number only line 8 the whole numbers, excluding fractions, for all other agencies. line 9 (3)  If the total cumulative number under paragraph (2) is less

line 10 than 100, add one vote each to the agencies that, prior to exclusion line 11 under paragraph (2), had the highest fractional amounts, but line 12 exclude from this allocation any agency whose fraction was line 13 boosted under paragraph (2), until a total of 100 votes is reached. line 14 (4)  If the total cumulative number under paragraph (2) is more line 15 than 100, subtract one vote each from the agencies that, prior to line 16 exclusion under paragraph (2), had the lowest fractional amounts, line 17 until a total of 100 votes is reached, but in no case shall an agency line 18 have less than one vote. line 19 (c)  The City of San Diego shall allocate half of its weighted line 20 vote to the mayor of the City of San Diego, and the other half shall line 21 be divided equally between the three city council members. The line 22 City of Chula Vista shall allocate its weighted vote evenly between line 23 its two members. line 24 (d)  For purposes of subdivision (b), the population of the County line 25 of San Diego is the population in the unincorporated area of the line 26 county within the area of jurisdiction of the transit development line 27 board pursuant to Section 120054. line 28 (e)  The board shall adopt a policy and procedure to implement line 29 this section. line 30 SEC. 7. Article 11 (commencing with Section 120480) is added line 31 to Chapter 4 of Division 11 of the Public Utilities Code, to read: line 32 line 33 Article 11. Transactions and Use Tax line 34 line 35 120480. (a)  A retail transactions and use tax ordinance line 36 applicable in the incorporated and unincorporated territory within line 37 the area of the board pursuant to Section 120054 shall be imposed line 38 by the board in accordance with Section 120485 and Part 1.6 line 39 (commencing with Section 7251) of Division 2 of the Revenue line 40 and Taxation Code, and Section 2 of Article XIIIC of the California

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line 1 Constitution. The tax ordinance shall take effect at the close of the line 2 polls on the day of election at which the proposition is adopted. line 3 The initial collection of the transactions and use tax shall take line 4 place in accordance with Section 120483. line 5 (b)  If, at any time, the voters do not approve the imposition of line 6 the transactions and use tax, this chapter remains in full force and line 7 effect. The board may, at any time thereafter, submit the same, or line 8 a different, measure to the voters in accordance with this chapter. line 9 120481. (a)  The board, in the ordinance, shall state the nature

line 10 of the tax to be imposed, the tax rate or the maximum tax rate, the line 11 purposes for which the revenue derived from the tax will be used, line 12 and may set a term during which the tax will be imposed. The line 13 purposes for which the tax revenues may be used shall be limited line 14 to public transit purposes serving the area of jurisdiction of the line 15 board, as determined by the board, including the administration line 16 of this division and legal actions related thereto. These purposes line 17 include expenditures for the planning, environmental reviews, line 18 engineering and design costs, and related right-of-way acquisition. line 19 The ordinance shall contain an expenditure plan that shall include line 20 the allocation of revenues for the purposes authorized by this line 21 section. line 22 (b)  As used in this section, “public transit purposes” includes line 23 the public transit responsibilities under the jurisdiction of the board line 24 as well as any bikeway, bicycle path, sidewalk, trail, pedestrian line 25 access, or pedestrian accessway. line 26 120482. (a)  The county shall conduct an election called by line 27 the board pursuant to Section 120480. line 28 (b)  The election shall be called and conducted in the same line 29 manner as provided by law for the conduct of elections by a county. line 30 120483. (a)  Any transactions and use tax ordinance adopted line 31 pursuant to this article shall be operative on the first day of the line 32 first calendar quarter commencing more than 110 days after line 33 adoption of the ordinance. line 34 (b)  Prior to the operative date of the ordinance, the board shall line 35 contract with the State Board of Equalization to perform all line 36 functions incident to the administration and operation of the line 37 ordinance. The costs to be covered by the contract may also include line 38 services of the types described in Section 7272 of the Revenue line 39 and Taxation Code for preparatory work up to the operative date

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line 1 of the ordinance. Any disputes as to the amount of the costs shall line 2 be resolved in the same manner as provided in that section. line 3 120484. The revenues from the taxes imposed pursuant to this line 4 article may be allocated by the board for public transit purposes line 5 consistent with the applicable regional transportation improvement line 6 program and the applicable regional transportation plan. line 7 120485. The board, subject to the approval of the voters, may line 8 impose a maximum tax rate of one-half of 1 percent under this line 9 article and Part 1.6 (commencing with Section 7251) of Division

line 10 2 of the Revenue and Taxation Code. The board shall not levy the line 11 tax at a rate other than one-half or one-fourth of 1 percent unless line 12 specifically authorized by the Legislature. line 13 120486. The board, as part of the ballot proposition to approve line 14 the imposition of a retail transactions and use tax, may seek line 15 authorization to issue bonds payable from the proceeds of the tax. line 16 120487. Any action or proceeding wherein the validity of the line 17 adoption of the retail transactions and use tax ordinance provided line 18 for in this article or the issuance of any bonds thereunder or any line 19 of the proceedings in relation thereto is contested, questioned, or line 20 denied, shall be commenced within six months from the date of line 21 the election at which the ordinance is approved; otherwise, the line 22 bonds and all proceedings in relation thereto, including the adoption line 23 and approval of the ordinance, shall be held to be valid and in line 24 every respect legal and incontestable. line 25 120488. The board has no power to impose any tax other than line 26 the transactions and use tax imposed upon approval of the voters line 27 in accordance with this article. line 28 SEC. 8. Section 125050 of the Public Utilities Code is amended line 29 to read: line 30 125050. There is hereby created, in that portion of the County line 31 of San Diego as described in Section 125052, the North County line 32 Transit District. The district shall be governed by a board of line 33 directors. As used in this division, “board” means the board of line 34 directors of the district. The board shall consist of members line 35 selected as follows: line 36 (a)  One member of the San Diego County Board of Supervisors line 37 appointed by the board of supervisors, which member shall line 38 represent, on the board of supervisors, the largest portion of the line 39 area under the jurisdiction of the district.

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line 1 (b)  The mayors of the Cities of Carlsbad, Del Mar, Encinitas, line 2 Escondido, Oceanside, San Marcos, Solana Beach, and Vista, and line 3 each new city that incorporates within the district boundaries. line 4 SEC. 9. line 5 SEC. 8. Section 125102 of the Public Utilities Code is amended line 6 to read: line 7 125102. (a)  A majority of the members of the board constitutes line 8 a quorum for the transaction of business. All official acts of the line 9 board require the affirmative vote of the majority of the weighted

line 10 vote of the members of the board present. However, any reference line 11 in this division to a two-thirds vote of the members of the board line 12 shall be deemed to mean the affirmative vote of two-thirds of the line 13 weighted vote of the members present. line 14 (b)  In the case of a weighted vote, there shall be a total of 100 line 15 votes. Each member agency shall have that number of votes line 16 annually determined by the following apportionment formula, line 17 provided that each agency shall have at least one vote, and that line 18 there shall be no fractional votes: line 19 (1)  Compute, consistent with subdivision (c), the total population line 20 of the cities and the county, and compute the percentage of this line 21 total for each agency. line 22 (2)  Boost percentage fractions in the case of each agency where line 23 the total is less than one, to one, and then add to that number only line 24 the whole numbers, excluding fractions, for all other agencies. line 25 (3)  If the total cumulative number under paragraph (2) is less line 26 than 100, add one vote each to the agencies that, prior to exclusion line 27 under paragraph (2), had the highest fractional amounts, but line 28 exclude from this allocation any agency whose fraction was line 29 boosted under paragraph (2), until a total of 100 votes is reached. line 30 (4)  If the total cumulative number under paragraph (2) is more line 31 than 100, subtract one vote each from the agencies that, prior to line 32 exclusion under paragraph (2), had the lowest fractional amounts, line 33 until a total of 100 votes is reached, but in no case shall an agency line 34 have less than one vote. line 35 (c)  For purposes of subdivision (b), the population of the County line 36 of San Diego is the population in the unincorporated area of the line 37 county within the area of jurisdiction of the board pursuant to line 38 Section 125052. line 39 (d)  The board shall adopt a policy and procedure to implement line 40 this section.

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line 1 SEC. 10. line 2 SEC. 9. Article 9 (commencing with Section 125480) is added line 3 to Chapter 4 of Division 11.5 of the Public Utilities Code, to read: line 4 line 5 Article 9. Transactions and Use Tax line 6 line 7 125480. (a)  A retail transactions and use tax ordinance line 8 applicable in the incorporated and unincorporated territory within line 9 the area of the board pursuant to Section 125052 shall be imposed

line 10 by the board in accordance with Section 125485 and Part 1.6 line 11 (commencing with Section 7251) of Division 2 of the Revenue line 12 and Taxation Code, and Section 2 of Article XIIIC of the California line 13 Constitution. The tax ordinance shall take effect at the close of the line 14 polls on the day of election at which the proposition is adopted. line 15 The initial collection of the transactions and use tax shall take line 16 place in accordance with Section 125483. line 17 (b)   If, at any time, the voters do not approve the imposition of line 18 the transactions and use tax, this chapter remains in full force and line 19 effect. The board may, at any time thereafter, submit the same, or line 20 a different, measure to the voters in accordance with this chapter. line 21 125481. (a)  The board, in the ordinance, shall state the nature line 22 of the tax to be imposed, the tax rate or the maximum tax rate, the line 23 purposes for which the revenue derived from the tax will be used, line 24 and may set a term during which the tax will be imposed. The line 25 purposes for which the tax revenues may be used shall be limited line 26 to public transit purposes serving the area of jurisdiction of the line 27 board, as determined by the board, including the administration line 28 of this division and legal actions related thereto. These purposes line 29 include expenditures for the planning, environmental reviews, line 30 engineering and design costs, and related right-of-way acquisition. line 31 The ordinance shall contain an expenditure plan that shall include line 32 the allocation of revenues for the purposes authorized by this line 33 section. line 34 (b)  As used in this section, “public transit purposes” includes line 35 the public transit responsibilities under the jurisdiction of the line 36 district as well as any bikeway, bicycle path, sidewalk, trail, line 37 pedestrian access, or pedestrian accessway. line 38 125482. (a)  The county shall conduct an election called by line 39 the board pursuant to Section 125480.

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line 1 (b)  The election shall be called and conducted in the same line 2 manner as provided by law for the conduct of elections by a county. line 3 125483. (a)  Any transactions and use tax ordinance adopted line 4 pursuant to this article shall be operative on the first day of the line 5 first calendar quarter commencing more than 110 days after line 6 adoption of the ordinance. line 7 (b)  Prior to the operative date of the ordinance, the board shall line 8 contract with the State Board of Equalization to perform all line 9 functions incident to the administration and operation of the

line 10 ordinance. The costs to be covered by the contract may also include line 11 services of the types described in Section 7272 of the Revenue line 12 and Taxation Code for preparatory work up to the operative date line 13 of the ordinance. Any disputes as to the amount of the costs shall line 14 be resolved in the same manner as provided in that section. line 15 125484. The revenues from the taxes imposed pursuant to this line 16 article may be allocated by the board for public transit purposes line 17 consistent with the applicable regional transportation improvement line 18 program and the applicable regional transportation plan. line 19 125485. The board, subject to the approval of the voters, may line 20 impose a maximum tax rate of one-half of 1 percent under this line 21 article and Part 1.6 (commencing with Section 7251) of Division line 22 2 of the Revenue and Taxation Code. The board shall not levy the line 23 tax at a rate other than one-half or one-fourth of 1 percent unless line 24 specifically authorized by the Legislature. line 25 125486. The board, as part of the ballot proposition to approve line 26 the imposition of a retail transactions and use tax, may seek line 27 authorization to issue bonds payable from the proceeds of the tax. line 28 125487. Any action or proceeding wherein the validity of the line 29 adoption of the retail transactions and use tax ordinance provided line 30 for in this article or the issuance of any bonds thereunder or any line 31 of the proceedings in relation thereto is contested, questioned, or line 32 denied, shall be commenced within six months from the date of line 33 the election at which the ordinance is approved; otherwise, the line 34 bonds and all proceedings in relation thereto, including the adoption line 35 and approval of the ordinance, shall be held to be valid and in line 36 every respect legal and incontestable. line 37 125488. The board has no power to impose any tax other than line 38 the transactions and use tax imposed upon approval of the voters line 39 in accordance with this article.

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line 1 SEC. 11. line 2 SEC. 10. Section 132351.1 of the Public Utilities Code is line 3 amended to read: line 4 132351.1. (a)  A board of directors consisting of 21 members line 5 shall govern the consolidated agency. line 6 (b)  For purposes of this chapter, “governing body” means the line 7 board of supervisors, council, council and mayor where the mayor line 8 is not a member of the council, authority, trustees, director, line 9 commission, committee, or other policymaking body, as

line 10 appropriate, that exercises authority over an entity represented on line 11 the board of the consolidated agency. line 12 (c)  All powers, privileges, and duties vested in or imposed upon line 13 the consolidated agency shall be exercised and performed by and line 14 through a board of directors provided, however, that the exercise line 15 of all executive, administrative, and ministerial power may be line 16 delegated and redelegated by the board, to any of the offices, line 17 officers, or committees created pursuant to this chapter or created line 18 by the board acting pursuant to this chapter. line 19 (d)  The board shall be composed of one primary representative line 20 selected by the governing body of each city in the county and the line 21 chair of the San Diego County Board of Supervisors. However, line 22 the City of San Diego and the County of San Diego shall each line 23 have a primary and secondary representative, which for the City line 24 of San Diego shall be the mayor of the City of San Diego and the line 25 president of the city council. Except in the case of the City of San line 26 Diego and the County of San Diego, each director shall be the line 27 mayor of the governing body of his or her city. Each director shall line 28 be a mayor, councilperson, or supervisor, as applicable, of the line 29 governing body that selected him or her. Vacancies shall be filled line 30 in the same manner as originally selected. Each city or county line 31 shall also select one alternate to serve on the board when the line 32 primary or secondary representative, if applicable, is not available. line 33 The alternate shall be subject to the same restrictions and have the line 34 same powers, when serving on the board, as the representative for line 35 whom he or she is substituting. The alternate shall be a line 36 councilperson mayor, councilperson, or supervisor, as applicable, line 37 of his or her governing body. line 38 (e)  Notwithstanding subdivision (d), in those years when the line 39 chair of the San Diego County Board of Supervisors is from a line 40 district that is substantially an incorporated area, a supervisor who

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line 1 represents a district that is substantially an unincorporated area line 2 shall be appointed to the board as the secondary representative. line 3 Alternatively, in those years when the chair of the San Diego line 4 County Board of Supervisors is from a district that is substantially line 5 an unincorporated area, a supervisor who represents a district that line 6 is substantially an incorporated area shall be appointed to the board line 7 as the secondary representative. line 8 (f)  At its discretion, each city or county may select a second line 9 alternate, in the same manner as the first alternate, to serve on the

line 10 board in the event that neither the primary representative nor the line 11 first alternate is able to attend a meeting of the board. This alternate line 12 shall be subject to the same restrictions and have the same powers, line 13 when serving on the board, as the primary representative. line 14 (g)  The board may allow for the appointment of advisory line 15 representatives to sit with the board but in no event shall those line 16 representatives be allowed a vote. The current advisory line 17 representatives to the San Diego Association of Governments may line 18 continue their advisory representation on the consolidated agency line 19 at the discretion of their governing body. The governing bodies of line 20 the County of Imperial and the cities in that county may line 21 collectively designate an advisory representative to sit with the line 22 board. line 23 SEC. 12. line 24 SEC. 11. Section 132351.2 of the Public Utilities Code is line 25 amended to read: line 26 132351.2. (a)  A majority of the member agencies constitute line 27 a quorum for the transaction of business. In order to act on any line 28 item, the affirmative vote of the majority of the weighted vote of line 29 the members present is required. line 30 (b)  The governing body of the City of San Diego and the County line 31 of San Diego shall allocate their weighted votes equally between line 32 their primary and secondary members. line 33 (c)  For the weighted vote, there shall be a total of 100 votes, line 34 except additional votes shall be allowed pursuant to subdivision line 35 (f). Each member agency shall have that number of votes line 36 determined by the following apportionment formula, provided that line 37 each agency shall have at least one vote and there shall be no line 38 fractional votes: line 39 (1)  Compute the total population of the San Diego region and line 40 compute the percentage of this total for each agency.

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line 1 (2)  Boost percentage fractions in the case of each agency where line 2 the total is less than one, to one, and then add to that number only line 3 the whole numbers, excluding fractions, for all other agencies. line 4 (3)  If the total cumulative number under paragraph (2) is less line 5 than 100, add one vote each to the agencies that, prior to exclusion line 6 under paragraph (2), had the highest fractional amounts, but line 7 exclude from this allocation any agency whose fraction was line 8 boosted under paragraph (2), until a total of 100 votes is reached. line 9 (4)  If the total cumulative number under paragraph (2) is more

line 10 than 100, subtract one vote each from the agencies that, prior to line 11 exclusion under paragraph (2), had the lowest fractional amounts, line 12 until a total of 100 votes is reached, but in no case shall an agency line 13 have less than one vote. line 14 (d)  The weighted vote formula under subdivision (c) shall be line 15 recomputed every July 1. line 16 (e)  Any newly incorporated city shall receive one vote under line 17 the weighted vote procedure until the next recomputation of the line 18 weighted vote formula under subdivision (c), at which time the line 19 new agency shall receive votes in accordance with the recomputed line 20 formula. Until this recomputation, the total weighted vote may line 21 exceed 100. line 22 SEC. 13. line 23 SEC. 12. Section 132351.4 of the Public Utilities Code is line 24 amended to read: line 25 132351.4. (a)  The consolidated agency shall have five standing line 26 policy advisory committees named the executive, transportation, line 27 regional planning, borders, and audit committees. The line 28 responsibilities of the committees shall be established by the board. line 29 Committee membership may be expanded by the consolidated line 30 agency, and shall be selected in accordance with a process line 31 established by the consolidated agency. The membership shall be line 32 as follows: line 33 (1)  The executive committee shall consist of six voting members line 34 with board members representing east county, north county coastal, line 35 north county inland, south county, and the representative, or the line 36 representative’s alternate in their absence, from the City of San line 37 Diego and the county. The chairperson and the vice chairperson line 38 of the consolidated agency shall each be one of the six voting line 39 members.

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line 1 (2)  (A)  The transportation committee shall consist of nine voting line 2 members with board members or alternates representing east line 3 county, north county coastal, north county inland, south county line 4 and the mayor or a council member from the City of San Diego, line 5 a supervisor from the County of San Diego, a member of the board line 6 of the MTDB appointed by the board of the MTDB, a member of line 7 the board of the NCTD appointed by the board of the NCTD, and line 8 a member of the San Diego County Regional Airport Authority line 9 appointed by the airport authority.

line 10 (B)  Among its transportation responsibilities, the transportation line 11 committee shall provide a strong focus and commitment to meeting line 12 the public transit needs of the San Diego region, set transit funding line 13 criteria and recommend transit funding levels, and undertake transit line 14 responsibilities resulting from consolidation, as delegated by the line 15 board. line 16 (C)  The board shall provide a report, developed by the line 17 transportation committee, to the Legislature on or before July 1 of line 18 each year that outlines the public transit needs, transit funding line 19 criteria, recommended transit funding levels, and additional work line 20 on public transit, as delegated to the transportation committee by line 21 the board. The report shall specify the funds spent explicitly on line 22 public transportation. The report shall be submitted consistent with line 23 Section 9795 of the Government Code. line 24 (3)  The regional planning committee shall consist of six voting line 25 members with board members or alternates representing east line 26 county, north county coastal, north county inland, south county, line 27 and the mayor or a council member from the City of San Diego, line 28 and a supervisor from the County of San Diego. line 29 (4)  The borders committee shall consist of seven voting line 30 members with board members or alternates representing east line 31 county, north county coastal, north county inland, south county, line 32 the mayor or a council member from the City of San Diego, a line 33 supervisor from the County of San Diego, and a mayor, council line 34 member, or supervisor from the County of Imperial. line 35 (5)  The audit committee shall consist of five voting members line 36 with two board members and three members of the public to be line 37 appointed by the board. The audit committee shall recommend to line 38 the board the contract of the firm conducting the annual financial line 39 statement audits and the hiring of the independent performance line 40 auditor and approve the annual audit plan after discussion with the

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line 1 independent performance auditor pursuant to subdivision (b) of line 2 Section 132354.1. line 3 (b)  The board may appoint other standing and ad hoc working line 4 groups to advise it in carrying out its responsibilities. line 5 (c)  No board member may serve as a member of more than two line 6 standing policy advisory committees at any one time, except those line 7 board members serving on the audit committee. line 8 SEC. 14. line 9 SEC. 13. Section 132352.3 of the Public Utilities Code is

line 10 amended to read: line 11 132352.3. The officers of the board are the chairperson and line 12 the vice chairperson. The mayors of the largest city and the line 13 second-largest city shall alternate between serving as chairperson line 14 and vice chairperson for four-year terms. The board may create line 15 additional officers and elect members to those positions. However, line 16 no member may hold more than one office. The term of office for line 17 any officers of the board other than the chairperson and the vice line 18 chairperson shall be established by the board. line 19 SEC. 15. line 20 SEC. 14. Section 132354.1 of the Public Utilities Code is line 21 amended to read: line 22 132354.1. (a)  The board shall arrange for a post audit of the line 23 financial transactions and records of the consolidated agency to line 24 be made at least annually by a certified public accountant. line 25 (b)  (1)  The audit committee shall appoint an independent line 26 performance auditor, subject to approval by the board, who may line 27 only be removed for cause by a vote of at least two-thirds of the line 28 audit committee and the board. line 29 (2)  The independent performance auditor shall have authority line 30 to conduct or to cause to be conducted performance audits of all line 31 departments, offices, boards, activities, agencies, and programs of line 32 the consolidated agency. The auditor shall prepare annually an line 33 audit plan and conduct audits in accordance therewith and perform line 34 those other duties as may be required by ordinance or as provided line 35 by the California Constitution and general laws of the state. The line 36 auditor shall follow government auditing standards. All officers line 37 and employees of the consolidated agency shall furnish to the line 38 auditor unrestricted access to employees, information, and records, line 39 including electronic data, within their custody regarding powers, line 40 duties, activities, organization, property, financial transactions,

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line 1 contracts, and methods of business required to conduct an audit line 2 or otherwise perform audit duties. It is also the duty of any line 3 consolidated agency officer, employee, or agent to fully cooperate line 4 with the auditor, and to make full disclosure of all pertinent line 5 information. line 6 (3)  The auditor shall have the power to appoint, employ, and line 7 remove assistants, employees, and personnel as deemed necessary line 8 for the efficient and effective administration of the affairs of the line 9 office and to prescribe their duties, scope of authority, and

line 10 qualifications. line 11 (4)  The auditor may investigate any material claim of financial line 12 fraud, waste, or impropriety within the consolidated agency and line 13 for that purpose may summon any officer, agent, or employee of line 14 the consolidated agency, any claimant, or other person, and line 15 examine him or her upon oath or affirmation relative thereto. All line 16 consolidated agency contracts with consultants, vendors, or line 17 agencies will be prepared with an adequate audit provision to allow line 18 the auditor access to the entity’s records needed to verify line 19 compliance with the terms specified in the contract. Results of all line 20 audits and reports shall be made available to the public in line 21 accordance with the requirements of the California Public Records line 22 Act (Chapter 3.5 (commencing with Section 6250) of Division 7 line 23 of the Title 1 of the Government Code). line 24 (c)  The board shall develop and adopt internal control guidelines line 25 to prevent and detect financial errors and fraud based on the internal line 26 control guidelines developed by the Controller pursuant to Section line 27 12422.5 of the Government Code and the standards adopted by line 28 the American Institute of Certified Public Accountants. line 29 (d)  The board shall develop and adopt an administration policy line 30 that includes a process to conduct staff performance evaluations line 31 on a regular basis to determine if the knowledge, skills, and abilities line 32 of staff members are sufficient to perform their respective line 33 functions, and shall monitor the evaluation process on a regular line 34 basis. line 35 SEC. 16. line 36 SEC. 15. Section 132360.1 of the Public Utilities Code is line 37 amended to read: line 38 132360.1. In preparing and updating the regional line 39 comprehensive plan, it is the intent of the Legislature that:

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line 1 (a)  The regional comprehensive plan preserve and improve the line 2 quality of life in the San Diego region, maximize mobility and line 3 transportation choices, and conserve and protect natural resources. line 4 (b)  The regional comprehensive plan shall address the line 5 greenhouse gas emissions reduction rules and regulations adopted line 6 by the State Air Resources Board pursuant to Section 38560 of line 7 the Health and Safety Code and the statewide greenhouse gas line 8 emissions limit set forth in Section 38566 of the Health and Safety line 9 Code and include strategies in that regard, including the

line 10 establishment of aggressive nonautomobile modal share targets line 11 for the region. targets set by the State Air Resources Board as line 12 required by Section 65080 of the Government Code and include line 13 strategies that provide for mode shift to public transportation. line 14 (c)  The regional comprehensive plan shall identify line 15 disadvantaged communities as designated pursuant to Section line 16 39711 of the Health and Safety Code and include transportation line 17 strategies to reduce pollution exposure in these communities. line 18 (d)  In formulating and maintaining the regional comprehensive line 19 plan, the consolidated agency shall take account of and shall seek line 20 to harmonize the needs of the region as a whole, the plans of the line 21 county and cities within the region, and the plans and planning line 22 activities of organizations that affect or are concerned with planning line 23 and development within the region. line 24 (e)  The consolidated agency shall engage in a public line 25 collaborative planning process. The recommendations resulting line 26 from the public collaborative planning process shall be made line 27 available to and considered by the consolidated agency for line 28 integration into the draft regional comprehensive plan. The line 29 consolidated agency shall adopt a procedure to carry out this line 30 process including a method of addressing and responding to line 31 recommendations from the public. line 32 (f)  In formulating and maintaining the regional comprehensive line 33 plan, the consolidated agency shall seek the cooperation and line 34 consider the recommendations of all of the following: line 35 (1)  Its member agencies and other agencies of local government line 36 within the jurisdiction of the consolidated agency. line 37 (2)  State and federal agencies. line 38 (3)  Educational institutions. line 39 (4)  Research organizations, whether public or private. line 40 (5)  Civic groups.

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line 1 (6)  Private individuals. line 2 (7)  Governmental jurisdictions located outside the region but line 3 contiguous to its boundaries. line 4 (g)  The consolidated agency shall make the regional line 5 comprehensive plan, policies, and objectives available to all local line 6 agencies and facilitate consideration of the regional comprehensive line 7 plan in the development, implementation, and update of local line 8 general plans. The consolidated agency shall provide assistance line 9 and enhance the opportunities for local agencies to develop,

line 10 implement, and update general plans in a manner that recognizes, line 11 at a minimum, land use, transportation compatibility, and a line 12 jobs-to-housing balance within the regional comprehensive plan. line 13 (h)  The consolidated agency shall maintain the data, maps, and line 14 other information developed in the course of formulating the line 15 regional comprehensive plan in a form suitable to assure a line 16 consistent view of developmental trends and other relevant line 17 information for the availability of and use by other government line 18 agencies and private organizations. line 19 (i)  The components of the regional comprehensive plan may line 20 include, but are not limited to, transportation, housing, water line 21 quality and supply, infrastructure, air quality, energy, solid waste, line 22 economy, and open space, including habitat. Performance standards line 23 and measurable criteria shall be established through a public line 24 process to ensure that the regional comprehensive plan is prepared line 25 consistent with these measures as well as in determining line 26 achievement of the regional comprehensive plan goals throughout line 27 its implementation. line 28 (j)  Any water supply component or provision of the regional line 29 infrastructure strategy regarding water supply contained in the line 30 regional comprehensive plan shall be consistent with the urban line 31 water management plan and other adopted regional water facilities line 32 and supply plans of the San Diego County Water Authority. line 33 SEC. 17. line 34 SEC. 16. If the Commission on State Mandates determines that line 35 this act contains costs mandated by the state, reimbursement to line 36 local agencies and school districts for those costs shall be made line 37 pursuant to Part 7 (commencing with Section 17500) of Division line 38 4 of Title 2 of the Government Code.

O

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AB 805 (Gonzalez Fletcher) – County of San Diego: Transportation

Agencies

Executive Committee

May 4, 2017

1

AI No. C1, 5/4/17

Assembly Bill 805 -- Overview

• Amended April 20

• Heard in Local Government (passed 5-4) and Transportation (passed 10-4)

• MTS registered “support with amendments”

• Referred to Appropriations Committee, no hearing date set

2

Amendments • Reinstates the Board-appointed chair but requires it

to be chosen from the Board members – 2/3 vote of the Board, a quorum being present – 4 year term

• Adds a 2nd Chula Vista Board member

• Mayors of Chula Vista and San Diego still must serve, but all other cities appoint a member from the Council

• No amendments to the voting structure since the April Board meeting – still requires all weighted vote and has no limits on San

Diego

3

Board of Equalization (BOE) Analysis

• BOE not taking a position on the bill

• By law must contract with the BOE to administer

• BOE currently administers 257 district taxes all of which have boundaries equal to their respective city or county lines – Without having defined limits to impose the tax, administration

and collection will be difficult

– Difficult to assign the correct sales tax in the unincorporated areas of the County since they are split between NCTD/MTS

– Expressed concerns about precedent

• Retailers “engaged in business” in a district are required to collect and report – may struggle to determine the correct tax

4

Current Status

• On suspense in Appropriations

• Author’s office has indicated that more amendments are forthcoming

– Changes to MTS’s weighted vote

– Removal of the requirement that the mayors of San Diego and Chula Vista serve

5

Topics Discussed in April but not Included in Currently Published Amendments:

• City of San Diego’s controlling vote at 59%

• The effect of the all-weighted-vote requirement on smaller cities – remedy for this

• The requirement that the mayors of Chula Vista and San Diego must serve

6

AB 805 (Gonzalez Fletcher) – County of San Diego: Transportation

Agencies

7

Agenda Item No. C2

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM EXECUTIVE COMMITTEE

May 4, 2017

SUBJECT:

FARE COLLECTION UPDATE (SHARON COONEY) INFORMATIONAL ONLY Budget Impact

None. DISCUSSION:

The San Diego Association of Governments (SANDAG), MTS, and the North County Transit District transitioned from paper fare products to the Compass Card electronic fare collection system in 2009. MTS assumed responsibility for management of Compass Card from SANDAG in 2014. MTS staff immediately began to review the current system’s status, correct system deficiencies, and begin the process for modernization and replacement of components of the system that was originally procured in 2003.

Staff will provide a report on progress on several Compass initiatives including mobile ticketing, stored value implementation, Webtix, and creation of a Concept of Operations for system modernization.

/s/ Paul C. Jablonski______________ Paul C. Jablonski Chief Executive Officer Key Staff Contact: Sharon Cooney, 619.557.4513, Sharon.Cooney@sdmts.com

ACTION

1. Roll Call

2. Approval of Minutes - April 13, 2017 Approve

3. Public Comments - Limited to five speakers with three minutes per speaker. Others

will be heard after Board Discussion items. If you have a report to present, please

give your copies to the Clerk of the Board.

BOARD OF DIRECTORS

May 11, 2017

9:00 a.m.

James R. Mills Building

Board Meeting Room, 10th Floor

1255 Imperial Avenue, San Diego

Agenda

RECOMMENDED

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM

This information will be made available in alternative formats upon request. To request an agenda in an

alternative format, please call the Clerk of the Board at least two working days prior to the meeting to ensure

availability. Assistive Listening Devices (ALDs) are available from the Clerk of the Board/Assistant Clerk of the

Board prior to the meeting and are to be returned at the end of the meeting.

1255 Imperial Avenue, Suite 1000 San Diego, CA 92101-7490 619.231.1466 FAX 619.234.3407

-1-

6. San Diego Metropolitan Transit System (MTS) Sale of 2014 Ford E450 Starcraft

Paratransit Bus to First Transit, Inc.

Approve

Action would authorize the negotiated sale of MTS Vehicle No. 3910 (2014 Ford

E450 Starcraft, VIN #1FDFE4FS2EDB10510) to First Transit, Inc.

7. California Department of Transportation (Caltrans) Program of Projects for Federal

Transit Administration (FTA) Section 5311 Funding, Federal Fiscal Year (FY) 2017

and FY 2018

Approve

Action would approve Resolution No. 17-7, authorizing the use of and application for

$275,000 of FY 2017 and $275,000 of FY 2018 Section 5311 funds for operating

assistance.

8. California Department of Transportation (Caltrans) Program of Projects for Federal

Transit Administration Section 5311(f) Funding, Fiscal Year 2017

Approve

Action would approve Resolution No. 17-8, authorizing the use of, and application

for, $203,500 of Federal Transit Administration (FTA) Section 5311(f) funds for

operating assistance in non-urbanized areas.

9. San Diego and Arizona Eastern (SD&AE) Railway Company Quarterly Reports and

Ratification of Actions Taken by the SD&AE Board of Directors at its Meeting on

April 18, 2017

Receive/

Ratify

Action would: (1) Receive the San Diego and Imperial Valley Railroad (SD&IV),

Pacific Southwest Railway Museum Association (Museum), and Desert Line

quarterly reports for information; and (2) Ratify actions taken by the SD&AE Board at

its quarterly meeting on April 18, 2017.

10. Courthouse Station Construction - Contract Award Approve

Action would authorize the Chief Executive Officer (CEO) to execute MTS Doc. Nos.

PWL222.0-17 and PWL232.0-17 with West Coast General/HMS Construction, Inc.,

a Joint Venture, for construction of the Orange Line Courthouse Station.

11. Investment Report - March 2017 Informational

12. Orange Line Track Improvements - Add Alternate (Optional Items) Award Approve

13. Paint Services for San Diego Transit Corporation (SDTC) and San Diego Trolley,

Inc. (SDTI) - Contract Award

Approve

Action would authorize the Chief Executive Officer (CEO) to execute MTS Doc. No.

PWL216.0-17 with Anemos Enterprises Inc. for the provision of paint services,

materials, equipment and supplies at MTS's Trolley Yard Building B and the Kearny

Mesa Division (KMD).

14. Mobile On Board Video Surveillance System for the Minibus and Paratransit Fleets -

Contract Amendment

Approve

CONSENT ITEMS

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Action would authorize the Chief Executive Officer (CEO) to execute Amendment

No. 9 to MTS Doc. No. B0521.0-09, with Apollo Video Technology (Apollo) for the

reallocation of $281,856.00 originally encumbered and included under Amendment

No. 8 as Optional Items to original agreement, for in-scope On Board Video

Surveillance System (OBVSS) installation related services of the minibus and

paratransit fleets.

15. Courthouse Station - Motorized Switch Machines and Controllers Approve

24. None.

Oral Report of Final Actions Taken in Closed Session

25. Proposed Fiscal Year 2018 Operating Budget (Mike Thompson) Enact/

Adopt

30.

31.

32.

33.

34.

45.

46.

47.

48.

49.

CLOSED SESSION

DISCUSSION ITEMS

REPORT ITEMS

NOTICED PUBLIC HEARINGS

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60. Chairman's Report Information

61. Chief Executive Officer's Report Information

62. Board Member Communications

63. Additional Public Comments Not on the Agenda

If the limit of 5 speakers is exceeded under No. 3 (Public Comments) on this

agenda, additional speakers will be taken at this time. If you have a report to

present, please furnish a copy to the Clerk of the Board. Subjects of previous

hearings or agenda items may not again be addressed under Public Comments.

64. Next Meeting Date: June 8, 2017

65. Adjournment

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Agenda Item No. 6

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM BOARD OF DIRECTORS

May 11, 2017

SUBJECT:

SAN DIEGO METROPOLITAN TRANSIT SYSTEM (MTS) SALE OF 2014 FORD E450 STARCRAFT PARATRANSIT BUS TO FIRST TRANSIT, INC.

RECOMMENDATION:

That the MTS Board of Directors authorize the negotiated sale of MTS Vehicle No. 3910 (2014 Ford E450 Starcraft, VIN #1FDFE4FS2EDB10510) to First Transit, Inc.

Budget Impact

Proceeds from the sale of the MTS vehicle will be recorded to the MTS revenue account 901010-440200.

DISCUSSION:

On February 1, 2017, MTS paratransit vehicle no. 3910 was involved in a collision resulting in major damage to the vehicle. The bus, owned by MTS, is operated by First Transit, Inc., as part of MTS’s paratransit service contract. Under the First Transit contract, First Transit is responsible for maintaining and operating the vehicles. First Transit is responsible for repairing any MTS vehicles damaged during First Transit’s operations. First Transit obtained a fair market valuation from Creative Bus Sales for this vehicle in its condition prior to collision. The estimated fair market value of the vehicle prior to collision was $34,000. First Transit also obtained an estimated minimum cost to repair the vehicle from Property Damage Appraisal. The estimated cost to repair was $30,256.43. First Transit has offered to purchase this vehicle from MTS at the fair market value of $34,000. Board Policy No. 33 states that “capital assets with an individual value in excess of $10,000 or an aggregate value in excess of $25,000 may be disposed of on a negotiated

-2-

sale basis provided a finding by the MTS Board of Directors by a two-thirds vote that special circumstances exist that make it in the best interest of the Board.” In accordance with Board Policy No. 33, alternatives to the proposed negotiated sale would include a competitive sale or internet auction. Given the current state of the vehicle, the highest return would be realized by a negotiated sale price based on the value of the vehicle prior to the collision. Therefore, MTS staff recommends that the MTS Board of Directors authorize the negotiated sale of MTS Vehicle No. 3910 (2014 Ford E450 Starcraft, VIN #1FDFE4FS2EDB10510) to First Transit, Inc.

/s/ Paul C. Jablonski_____________ Paul C. Jablonski Chief Executive Officer Key Staff Contact: Sharon Cooney, 619.557.4513, Sharon.Cooney@sdmts.com Attachment: A. First Transit Offer Letter to MTS

7490 Copley Park Pl San Diego, CA 92111 Tel: 858 277 1496 Fax: 858 737 7897

A FirstGroup America Company www.firstgroupamerica.com

March 29, 2017

Jay Washburn

Manager Paratransit and Minibus

Metropolitan Transit System

100 16th Street

San Diego, CA 92001

Dear Mr. Washburn:

On February 1, 2017, MTS Paratransit vehicle 3910 was involved in collision resulting in major

damage to the vehicle. First Transit has obtained the attached fair market valuation from Creative

Bus Sales for this vehicle at $34,000.00. First Transit has obtained a Property Damage Appraisal

from PDA Riverside with an estimated minimum cost to repair of $30,256.43 and declaring the

vehicle a Total Loss. Due to the estimated cost of repair, nature of damage and vehicle value, it is

not cost effective to attempt to repair this vehicle. Therefore, First Transit will offer to purchase

this vehicle at the fair market value of $34,000.

The following is a summary identifying the vehicle, repair costs and fair market value:

Vehicle Number 3910

Vin 1FDFE4FS2EDB10510

Odometer 72,147

Year 2014

Make Ford

Model E450 Starcraft

Fair Market Value $34,000.00

Repair cost to exceed: $30,256.43

I would like to thank you for your consideration and believe this offer represents a fair equitable

resolution to this matter. Please feel free to contact me at your convenience.

Sincerely,

John Lewis,

General Manager

Enc: Fair Market Valuation – Creative Bus Sales

Estimate to Repair – PDA Riverside

Att. A, AI 6, 5/11/17

A-1

Agenda Item No. 7

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM BOARD OF DIRECTORS

May 11, 2017

SUBJECT:

CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) PROGRAM OF PROJECTS FOR FEDERAL TRANSIT ADMINISTRATION (FTA) SECTION 5311 FUNDING, FEDERAL FISCAL YEAR (FY) 2017 AND FY 2018

RECOMMENDATION:

That the San Diego Metropolitan Transit System (MTS) Board of Directors approve Resolution No. 17-7, (Attachment A) authorizing the use of and application for $275,000 of FY 2017 and $275,000 of FY 2018 Section 5311 funds for operating assistance. Budget Impact

The 5311 program has a 44.67% non-federal match requirement. MTS will be required to provide non-federal matching funds in the amount of $222,018 for FY 2017 and $222,018 for FY2018 non-federal matching funds.

DISCUSSION:

The FTA provides funding for capital and operating assistance to agencies providing rural transportation through the Section 5311 Non-Urbanized Area Formula Program. These funds do not come directly to the region but are apportioned to the states. In turn, Caltrans, on behalf of the State of California, reapportions the funds to the region based solely on the regional rural population as a share of the state total rural population. San Diego Association of Governments (SANDAG) allocates the region’s funds to both North County Transit District (NCTD) and MTS based on the relative rural population in each service area.

-2-

MTS uses these Section 5311 formula funds to fund Routes 888, 891, 892 and 864.

Caltrans has decided to conduct a multi-year Call for Projects which includes programming both FY 2017 and FY 2018 5311 apportionments in one application cycle. The FY 2017 includes a carryover amount from prior years. For FY 2017, MTS’ apportionment of 5311 funds is $419,984, inclusive of funds carried forward from FY 2016. Of this amount $275,000 will be used for FY 2018 rural operations. The remaining $144,984 will carry forward as part of the FY 2018 apportionment. For FY 2018, MTS’s apportionment of 5311 funds is $440,172, inclusive of funds carried forward from FY2017. Of this amount, $275,000 will be used for FY 2019 rural operations. $165,172 in excess funds will be carried forward and applied with the future FY 2019 apportionment.

-3-

Therefore, staff recommends that the MTS Board of Directors approve Resolution No. 17-7, (Attachment A) authorizing the use of and application for $275,000 of FY 2017 and $275,000 of FY 2018 Section 5311 funds for operating assistance.

/s/ Paul C. Jablonski______________ Paul C. Jablonski Chief Executive Officer Key Staff Contact: Sharon Cooney, 619.557.4513, Sharon.Cooney@sdmts.com Attachment: A. Board Resolution No. 17-7

Att. A, AI 7, 5/11/17

A-1

SAN DIEGO METROPOLITAN TRANSIT SYSTEM

Resolution No. 17-7

Resolution Authorizing Federal Funding Under FTA Section 5311(49 U.S.C. Section 5311)

with the California Department of Transportation

WHEREAS, the U.S. Department of Transportation is authorized to make grants to states through the Federal Transit Administration (FTA) to support capital and operating assistance projects for nonurbanized public transit services under Section 5311 of the Federal Transit Act; and

WHEREAS, the California Department of Transportation has been designated by

the Governor of the State of California to administer Section 5311 grants for transportation projects for the general public for the rural transit and intercity bus; and

WHEREAS, the San Diego Metropolitan Transit System (MTS) desires to apply

for said financial assistance to operate rural transit service and support capital improvements in San Diego County; and

WHEREAS, MTS has, to the maximum extent feasible, coordinated and

consulted with other transportation providers and users in the region (including social service agencies);

NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED that

MTS does hereby authorize the Chief Executive Officer, or designated representative, to file and execute any actions necessary on behalf of MTS with the California Department of Transportation to aid in the financing of operating or capital assistance projects pursuant to Section 5311 of the Federal Transit Act of 1964, as amended; that the designated representatives are:

1. The Chief of Staff is authorized to file and execute any actions necessary

on behalf of MTS with the California Department of Transportation to aid in the financing of operating or capital assistance projects pursuant to Section 5311 of the Federal Transit Act of 1964, as amended.

2. The General Counsel is authorized to file and execute any actions

necessary on behalf of MTS with the California Department of Transportation to aid in the financing of operating or capital assistance projects pursuant to Section 5311 of the Federal Transit Act of 1964, as amended.

3. The Chief Financial Officer is authorized to provide additional information

as the California Department of Transportation may require in connection with the application for Section 5311 projects.

Att. A, AI 7, 5/11/17

A-2

PASSED AND ADOPTED, by the Board of Directors this 11th day of May 2017, by the following vote:

AYES: NAYS: ABSENT: ABSTAINING:

Chairperson San Diego Metropolitan Transit System

Filed by: Approved as to form: Clerk of the Board Office of the General Counsel San Diego Metropolitan Transit System San Diego Metropolitan Transit System

Agenda Item No. 8

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM BOARD OF DIRECTORS

May 11, 2017

SUBJECT:

CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) PROGRAM OF PROJECTS FOR FEDERAL TRANSIT ADMINISTRATION SECTION 5311(f) FUNDING, FISCAL YEAR 2017

RECOMMENDATION:

That the San Diego Metropolitan Transit System (MTS) Board of Directors approve Resolution No. 17-8, (Attachment A) authorizing the use of, and application for, $203,500 of Federal Transit Administration (FTA) Section 5311(f) funds for operating assistance in non-urbanized areas.

Budget Impact

If awarded, MTS will receive federal fiscal year 2017 5311(f) funds in the amount of $203,500 for operating assistance. Based on the maximum 55.33% federal share of eligible expenditures, MTS will be required to provide non-federal matching funds in the amount of $164,294, or 44.67% of the total project costs.

DISCUSSION:

Caltrans administers a statewide competitive grant program wherein transit agencies and non-profit organizations are eligible to apply for up to $300,000 in financial assistance for operations serving areas outside of the federally defined urban boundary. Eligible projects can include existing operations, new services or service expansion. However, projects must be consistent with the state-adopted objectives and meet federal certifications and assurance guidelines. MTS already meets the federal guidelines as an eligible recipient of other federal funds.

-2-

MTS uses these Section 5311(f) funds to funds fund Route 894 (Tecate – Campo – Morena Village – El Cajon) (a rural route that connects to inter-city bus networks).

Caltrans requires the submission of a resolution by agency Board of Directors authorizing the submission of a grant application and project programming. Staff has also requested the San Diego Associations of Governments (SANDAG) certify that it will amend the Regional Transportation Improvement Program in the event of a grant award, as per Caltrans requirements. Therefore, staff recommends that the MTS Board of Directors approve Resolution No. 17-8, (Attachment A) authorizing the use of, and application for, $203,500 of Federal Transit Administration (FTA) Section 5311(f) funds for operating assistance in non-urbanized areas.

/s/ Paul C. Jablonski________________ Paul C. Jablonski Chief Executive Officer Key Staff Contact: Sharon Cooney, 619.557.4513, Sharon.Cooney@sdmts.com Attachment: A. Board Resolution No. 17-8

Att. A, AI 8, 5/11/17

A-1

SAN DIEGO METROPOLITAN TRANSIT SYSTEM

Resolution No. 17-8

Resolution Authorizing Federal Funding Under FTA Section 5311(f)

with the California Department of Transportation

WHEREAS, the U.S. Department of Transportation is authorized to make grants to states through the Federal Transit Administration (FTA) to support capital and operating assistance projects for nonurbanized public transit services under Section 5311(f) of the Federal Transit Act; and

WHEREAS, the California Department of Transportation has been designated by the

Governor of the State of California to administer Section 5311(f) grants for public transportation projects; and

WHEREAS, San Diego Metropolitan Transit System (MTS) desires to apply for said

financial assistance to operate rural transit service in San Diego County; and WHEREAS, MTS has, to the maximum extent feasible, coordinated and consulted with

other transportation providers and users in the region, including consultation with San Diego County Health and Human Services;

NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED that MTS

does hereby authorize the Chief Executive Officer, or designated representative, to file and execute any actions necessary on behalf of MTS with the California Department of Transportation to aid in the financing of operating or capital assistance projects pursuant to Section 5311(f) of the Federal Transit Act of 1964, as amended; that the designated representatives are:

1. The Chief of Staff is authorized to file and execute any actions necessary

on behalf of MTS with the California Department of Transportation to aid in the financing of operating or capital assistance projects pursuant to Section 5311(f) of the Federal Transit Act of 1964, as amended.

2. The General Counsel is authorized to file and execute any actions

necessary on behalf of MTS with the California Department of Transportation to aid in the financing of operating or capital assistance projects pursuant to Section 5311(f) of the Federal Transit Act of 1964, as amended.

3. The Chief Financial Officer is authorized to provide additional information

as the California Department of Transportation may require in connection with the application for Section 5311(f) projects.

Att. A, AI 8, 5/11/17

A-2

PASSED AND ADOPTED, by the Board of Directors this 11th day of May 2017, by the following vote:

AYES: NAYS: ABSENT: ABSTAINING:

Chairperson San Diego Metropolitan Transit System

Filed by: Approved as to form: Clerk of the Board Office of the General Counsel San Diego Metropolitan Transit System San Diego Metropolitan Transit System

Agenda Item No. 9

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM BOARD OF DIRECTORS

May 11, 2017

SUBJECT:

SAN DIEGO AND ARIZONA EASTERN (SD&AE) RAILWAY COMPANY QUARTERLY REPORTS AND RATIFICATION OF ACTIONS TAKEN BY THE SD&AE BOARD OF DIRECTORS AT ITS MEETING ON APRIL 18, 2017

RECOMMENDATION:

That the Board of Directors: 1) receive the San Diego and Imperial Valley Railroad (SD&IV), Pacific Southwest

Railway Museum Association (Museum), and Desert Line quarterly reports (Attachment A) for information; and

2) ratify actions taken by the SD&AE Board at its quarterly meeting on April 18, 2017.

Budget Impact

None. DISCUSSION:

Pursuant to the Agreement for Operation of Freight Rail Services, SD&IV and Museum, have provided operations reports during the first quarter of 2017 (Attachment A).

/s/ Paul C. Jablonski________________ Paul C. Jablonski Chief Executive Officer Key Staff Contact: Sharon Cooney, 619.557.4513, Sharon.Cooney@sdmts.com Attachment: A. Copy of Final Meeting Materials from 4/18/2017 SD&AE Meeting

SeN Drtco & Antzor.r¡Eestpnu Rnnv¡,yCoup¡,uy,I. NEVJ,DÀ NONDÊOFITCORPORATION

rz55 IMÞERIAL AVE., STE. rooos^N DTEGO, C^

92ror-749oßry) zy-r466

BO¿,RD OF DIRECTORSPAUL IÀBLONSKI, CHAIRPERSON

MÀTT DOMEN

JÀRED GoOCH

OFFICBRS

PAUL J.{BLONSKI, PRESIDENTMÄTT DOMEN, SBCRET.{RY

ERIN DUNN, TREASUREB,

LEGÂL COUNSEL

KÀREN LANÞERS

San Diego and Arizona Eastern (SD&AE)Railway Company

Board of Directors Meeting

April 18,2017

9:00 a.m.

Executive Committee RoomJames R. Mills Building

1255 lmperialAvenue, 1Oth Floor

This information will be made available in alternative formats upon request. To request an agendain an alternative format, please call the Clerk of the Board at least five working days prior to themeeting to ensure availability. Assistive Listening Devices (ALDs) are available from the Clerk ofthe Board prior to the meeting and are to be returned at the end of the meeting.

ACTIONRECOMMENDED

1. Approval of the Minutes of Januarv 17.2017 ApproveAction would approve the SD&AE Railway Company Minutes ofJanuary 17,2017.

2. Statement of Railwav Finances (Shiela Dilavre) lnformational

3. Report on San Dieoo and lmperial Vallev (SD&|V) Railroad lnformationalOperations (Matt Domen)

4. Repoft on Pacific Southwest Railwav Museum (Diana Hvatt) lnformational

5. Report on the Desert Line

a. Desert Line Lease Activities lnformational

b. ldentification and Disposal of Abandoned Personal Propertv / ApproveRollinq Stock on the Desert Line (Karen Landers)Action would authorize staff to take all necessary andappropriate steps to identify and remove abandoned property onthe Desert Line.

AGENDA

6. Real Propertv Matters (Tim Allison)

a. Summarv of SD&AE Docs. lssued Since Januarv 17. 2017

b. Easement For Street lmprovements for the Citv of La MesaAction would approve issuing an easement to the City ofLa Mesa for sidewalk and retaining-wall improvements alongSpring Street just south of lnterstate I (l-8).

c. Licenses for Aerial Fiber East of CampoAction would approve licenses for aerialfiber-crossing within theSD&AE right-of-way east of Campo.

d. Campo lndian Band Renewable Enerqv ProiectAction would receive a report and provide direction to staff.

lnformational

Approve

Approve

PossibleAction

Att. A, AI 9, 5/11/17

A-1

7. Board Member Communications

8. Public Comments

9. Next Meeting Date: July 11,2017

10. Adjournment

Page 2 ol2

Att. A, AI 9, 5/11/17

A-2

MINUTES

BOARD OF DIRECTORS MEETING OF THESAN DIEGO & ARIZONA EASTERN RAILWAY COMPANY

January 17,2017

A meeting of the Board of Directors of the San Diego & Arizona Eastern (SD&AE) Railway Company, aNevada corporation, was held al 1255lmperial Avenue, Suite 1000, San Diego, California g2101, onJanuary 17 ,2017, at 9:04 a.m.

The following persons, constituting the Board of Directors, were present: Paul Jablonski, Matt Domen, andJared Gooch. Also in attendance were members from:

San Diego Metropolitan Transit System: Tim Allison, Erin Dunn, Karen Landers, Wayne TerryPacific Southwest Railway Museum: Diana HyattRailPros Dan Davis

1. Approval of Minutes

Mr. Domen moved to approve the Minutes of the October 11,2016, SD&AE Railway Board ofDirectors meeting. Mr. Gooch seconded the motion, and it was unanimously approved.

2. Statement of Railwav Finances

Erin Dunn reviewed Statement of Railway Finances for the period ending November 30, 2016(attached to the agenda item). Ms. Dunn stated that after the report was produced, approximately$8,000 in additional expenses were located that pertain to this reporting period. These expenses willbe added to the next quarterly report. Due to these additional expenses, the Year{o-Date ActualforJuly through November reflects $449k but should be adjusted downward to $441k. Ms. Landersreminded the Board to anticipate expenses paid to RailPros in the next quarter for Desert Linereconstruction fees.

Action Taken

Mr. Domen moved to receive the report. Mr. Gooch seconded the motion, and it was unanimouslyapproved.

3.

Matt Domen reviewed the SD&IV Periodic Report for activities for the fourth quarter oÍ 2016 (attachedto the agenda item).

Action Taken

Mr. Gooch moved to receíve the report. Mr. Domen seconded the motion, and it was unanimouslyapproved.

Att. A, AI 9, 5/11/17

A-3

SD&AE Railway Company Board Meeting Minutes January 17,2017

4. Report on Pacific Southwest Railwav Museum Operations

Diana Hyatt reviewed the Pacific Southwest Railway Museum (PSRM) report for the fourth quarter of2016 (attached to the agenda ítem). Ms. Hyatt noted corrections to the ticket revenue amount in thequarterly report for the fourth quarter 2016 the original amount of $234,413 was revised to $259,360,and a check in the amount of $5,187.20 was submitted to MTS. Ms. Hyatt added that the recentheavy rains have affected the fire-damaged areas of Potrero, particularly in the area of Division.

Action Taken

Mr. Jablonski moved to receive the report. Mr. Domen seconded the motion, and it was unanimouslyapproved.

5. Report on the Desert Line

Karen Landers noted there were no representatives from PlR, and she gave a report. Ms. Landersstated that PIR filed for Chapter 11 reorganization, and there is an action in the bankruptcy courtcurrently to sell assets, including the Desert Line Lease. An entity that Baja Rail, the sublessee, is apart of has put in what is called a Stalking-Horse Bid to take over. Under the lease, Baja Rail currentlyhas the first 60 miles for which it is responsible for performing the milestones, Baja Rail submitted anupdated Reconstruction Plan to MTS last Friday. Dan Davis with RailPros will begin reviewing theplan and dialoging with Baja Rail regarding any questions or additional information that he needs. lt ishopeful that by the next meeting, there will be a better idea of when construction can begin (if it hasn'talready by then). Ms. Landers stated that MTS has bankruptcy counsel representation. She notedthat PIR is technically in default under some of its performance milestones for the 10 miles of rails andbridges that were supposed to be completed first. lt is concerning that due to the bankruptcy action,PIR is not taking any action to perform its lease obligations, which could jeopardize Baja Rail'sperformance. MTS is reviewing its options with bankruptcy counsel in the matter. Ms. Landers statedthat if policy changes are needed, it would have to be done in closed session. She added that theMTS Board will be given a briefing.

Ms. Landers stated that there is a renewed management fight for control within PIR and itsshareholders. One group is saying that the transfer of majority shareholder interests that happenedlast fall is invalid, and they've rescinded it and are back in control of PlR. Randall Polcyn is saying thathe has been appointed by the group as back in control. Ms. Landers has reviewed this informationwith the bankruptcy attorney and until the bankruptcy court takes any action, MTS is not accepting anynew direction in regard to a change in control of PlR. Everything that PIR does now is somewhatsupervised by the bankruptcy court. MTS is pursuing its options and making sure that its rights areprotected. Under the sublease, if PIR is in default, then Baja Rail has the right to come in and curethat default. MTS wants this process to move smoothly to get the line operating.

Ms. Hyatt asked who is authorized to request track warrants over the Museum's portion of the line.Ms. Landers responded that the Museum should be working with Baja Rail. She explained that underthe sublease, Baja Rail has the first 60 miles and has somewhat exclusive rights to operate there.Ms. Landers requested that she be informed ¡f PIR requests any independent access to do anythingon the line.

Ms. Landers informed the Board that there is another separate lawsuit between Gary Sweetwood andPlR, which was recently stayed for a few months due to the pending bankruptcy action.

-2-

Att. A, AI 9, 5/11/17

A-4

SD&AE Railway Company Board Meeting Minutes January 17,2017

Action Taken

Mr. Jablonski moved to receive the report. Mr. Domen seconded the motion, and it was unanimouslyapproved.

6. Real Propertv Matters

a. Summarv of SD&AE Documents lssued Since October 11. 2016

Since the October 11,2016, SD&AE Railway Company Board of Directors meeting, thedocuments described below have been processed by staff.

. 5200-17-647: License to Crown Castle NG West LLC for aerialfiber at 32nd Street andHarbor Drive in the City of San Diego.

o 5200-17-648: Right of Entry Permit to AirX Utility Surveyors, lnc. for utility location atElm Street in the City of San Diego.

Action Taken

Mr. Jablonski moved to receive the report. Mr. Domen seconded the motion, and it wasunanimously approved.

Board Member Communications

Ms. Landers responded to a comment about allowing Board members to call in remotely to meetingsas opposed to physically attending. She explained that Board members can call in remotely andwould need to make their location and call-in information public in the event that anyone from thepublic would like to sit in on that call at that location.

Public Comments

There were no public comments.

Next Meeting Date

The next meeting of the SD&AE Railway Company Board of Directors is on Tuesday, April 1 1, 2017 .

Adiournment

The meeting was adjourned at 9:21 a.m.

5200-16-635: Right of Entry Permit to the HP Communications lnc. to install aerialfiberat 32nd Street and Harbor Drive in the City of San Diego.

8.

9.

10.

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Att. A, AI 9, 5/11/17

A-5

SUBJECT:

STATEMENT OF RAILWAY FINANCES

RECOMMENDATION:

That the SD&AE Railway Company Board of Directors receive a financial report for theperiod ending February 28,2017.

Budqet lmpact

None.

DISCUSSION:

Attached are SD&AE's financial results for the period ending February 28,2017.

As of February 28,2017, fiscal year-to-date revenues are $665,000 favorable to budgetprimarily due to the Desert Line Lease revenue not included in the budget.

Fiscal year-to-date expenses are $55,000 favorable to budget due to a favorablevariance in Personnel Costs.

The Net lncome for the period ending February 28,2017, was $701,000.

Agenda ltem No.

San Diego and Arizona Eastern (SD&AE)Railway Company

Board of Directors Meeting

April18,2017

2

Attachment: SD&AE Operating Statement for period ending 2128117

Att. A, AI 9, 5/11/17

A-6

SD&AE Operating Statement FY2017 -16

Revenues

Right of Entry PermitsLease lncomeDesert Line Lease RevenueOperator lncome - SD&IV 1%Freight Fee

Total Revenue

Expenses

Personnel CostsOutside Serv¡ces

Risk ManagemenlMisc. Operating Expenses

Total Expense

Net lncome/(Loss)

$ 3,000 $ 12,99919,103 19,019

250,000 250,000

8,s00

280,603 290,518

(Jan - Feb) (Jul - Feb) (Jul - Feb)

8,500

Keserve Ealance July 1,2016

$ 75010,344

166,667

5,700

183,460

2,752't4,059

3,7621,146

21,719

$ 258,884

Allocated lnterest Earnings- EstimatedOperating ProfiV(Loss) -YTD

$ 16,74948,466

666,667

22,700

754,58'l

4,3471,8304,1_77

Reserve Balance as ofFeb28,2017

$ 20,00046,664

23,336

90,000

10,354

$280,1 63

4,22215,151

2,2-31

$1.s81.452

$ (3,2s1)1,802

666,667

(636)

664,581

11,3213't,04010,1701,146

53,677

$700,904

21,604

$161,8s7

6,667

700,904

67,94129,99710,672

336

108,946

$(18,946)

$2,289,023

$ 6,650 $10,09942,563 5,903

666,667 (0)

2,297

56,620(1,043)

502(81 0)

55,269

$719,850

736,283 18,298

59,568 5,891

$ 676,71s $24,189

Att. A, AI 9, 5/11/17

A-7

April18,2017

SUBJECT:

REPORT ON SAN DTEGO AND IMPERIAL VALLEY (SD&|V) RAILROAD OPERATIONS

RECOMMENDATION:

That the SD&AE Board of Directors receive a report for information.

Budqet lmpact

None.

DISCUSSION:

An oral report will be given during the meeting.

Agenda ltem No.

San Diego and Arizona Eastern (SD&AE)Railway Company

Board of Directors Meeting

Attachment: Periodic Report for the 1't Quarter oÍ 2017

3

Att. A, AI 9, 5/11/17

A-8

SD&AE BoardC/O MTS1255 Imperial Avenue, Suite 1000San Diego, California 92101

rt¡¡rrrl ünofif Ccr¡ry

In accordance with Section 20 of the Agreement for Operational Freight Service andControl through Management of the San Diego and Arizona Eastern Railway Companyactivities of interest for the lst Quarter of 2017 are listed as follows:

1. Labor

At the end of March3l,20l7 the San Diego & Imperial Railroad had l0employees:

I General Manager

I Trainmaster

I Manager - Marketing & Sales

I Offrce Manager

I Mechanical Manager

I Maintenance of Way Employee

I Utility employee

3 Train Service Employees

Periodic Report

April3,2017

Att. A, AI 9, 5/11/17

A-9

2. Marketing

Volume in the lst Quarter had a slight 2Yo decrease as compared to the samequarter in20l6. Bridge traffic into Mexico had a9%o decrease due to lowervolumes of grain and LPG. Traffic terminating or originating on the SDIY wasup 27Yo versus last year, mainly due to the increase in traffic handled at the SanYsidro transload facility.

3. ReportablelnjuriesÆnvironmental

Days throughyear to date, March 31,2017, there were no FRA Reportable injuriesor Environmental incidents on the SDIV Railroad.

Days FRA Reportable Injury Free: 7301

4. Summary of Freight

Total ra¡l carloads thatmoved by SDIY RailService in the quarter.

Total railroad carloadsTerm i nati n g/Orig i nati ngMexico in the quarter.

Total railroad carloadsTe¡m inating/Originating ElCajon, San Diego, NationalCity, San Ysidro, Galiforniain the quarter.

Total customers directlyserved by SDIY in thequarter

2017

Regional Truck trips thatSDIY Railroad Servicereplaced in the quarter

1450

1092

Respectfully,

Matt Domen

General Manager

2016

358

1483

1202

10

2015

281

906

4350

621

11

285

4449

12

2718

Att. A, AI 9, 5/11/17

A-10

Agenda ltem No.

San Diego and Arizona Eastern (SD&AE)Railway Company

Board of Directors Meeting

April 18,2017

SUBJECT:

REPORT ON PACIFIC SOUTHWEST RAILWAY MUSEUM

RECOMMENDATION:

That the SD&AE Board of Directors receive a report for information.

Budqet lmpact

None.

DISCUSSION:

An oral report will be given during the meeting.

Attachment: Quarterly Report

4

Att. A, AI 9, 5/11/17

A-11

t\o\ElçlR/

April7,2OI7

Pacific Southwest ßailway[a Mesa Depot 4895 l{ebo Dtive [a Mesa, CA 91941

SD&AE Board

c/o Metropolitan Transit System

1-255 lmperial Avenue, Suite 1.000

San Diego, CA 92101

Re: First Quarter 2017

Dear SD&AE Board:

During ihe first quarter of 2017, utilizing all volunteer crews, the Pacific Southwest Railway

Museum ran26 Golden State passenger trains to the international border and return and 76

Valley Fiyer passenger trains with¡n the Campo Valley carrying L,L85 passengers during 22

operating days. There were no FRA reportable accidents or injuries during the first quarter,

2017. Ticket revenue from SD&AE property for first quarter, 2017 was S18,9S0; our check for

$379 is enclosed.

Passenger ridership by comparison to the same quarter in previous years:

2,380 passengers during the first quarter of 2ü'6; SqO,atS2,333 passengers during the first quarter of 20L5; 536,4622,223 passengers during the first quartet of 2014; $36,5663,081 passengers during the first quarter of 2013; 520,9323,00L passengers during the first quarter of 2072;527,28I

924 passengers during the first quarter of 2OII;|tg,tgZ

Passenger ridership declined significantly during this quarter due to two main factors' The

primary factor was the weather element; there were multiple rainstorms throughout January

and into early February dumping several inches of rain at a time. An entire operating weekend

was cancelled in expectation of one of these large storms and visitors dwindled as people were

deterred from driving in the poor weather conditions. The secondary fallout from the weather

was an immense amount of rocks and silt falling onto the tracks, The extreme amounts of water

[lIuseunt6tE 405 7778

A Federal Tax Exempt 501 [C] 3 Callfornia lfon-Profit Corponatlon www.pÊrm.orq

Att. A, AI 9, 5/11/17

A-12

caused the railroad ties to swell and become saturated. As the rain ceased and the days

warmed, the ties dried out and in one particular area, spikes were not holding the rail in gauge.

This created the secondary factor leading to our reduced ridership during the quarter: on

Sunday, February 19,2077 while westbound from Campo shoving two coaches, our 70-tonlocomotive derailed at MP 64.85 due to spread gauge. At the point of derailment, the train was

traveling at 8 MPH, There were no injuries as the passengers felt nothing and there was nodamage to the track, railor locomotive. To bring the track back into gauge in this section, a

total of twelve ties were replaced and several gauge rods installed. Because the damage fellconsi.leratrly below the S10,000 threshold and there were no injuries, this derailment is notconsiderecl by the FRA as necessary to be reported to them. During the time needed for trackrepairs, PSRM operated Valley Flyer passenger trains within the Campo Valley. Somepassengers, especially those with small children enjoy the short ride, but most are disappointedwhen the full train ride is not available; some reservations were held until our guests could visitCampo and ride the Golden State train.

PSRM continues to maintain both signalized railroad crossings within our right of way limitsperfornring the monthly and quarterly inspections. PSRM also performs bi-weekly trackinspections between MP 59.9 and MP 66.77. Ourcontractweed sprayer paid us a visit and wastaken on an inspection trip of the railroad. He will return soon to spray a concoction of pre-

emergent and other herbicides along the right of way to keep down the vegetation.

PSRM is happy to announce that it has progressed towards another goal laid out in the pastseveralyears'strategic plans and has hired an Administrator of Fund Development. She is

tasked with a tall orderthat will lay the foundation for an expanded fund-raising and grant-writing program for PSRM. We are pleased to welcome her as part of our team.

PSRM's Bunny Trains are presently in full swing and will be offered on Saturday, April 8th

Sunday,A¡lril gthandSaturday,April l-SthwithtraindeparturetimesatlO:00 am,1,2:'J.5 pmand2:30 pm erch day. All staff from our sister organizations are invited to join us as our guestsduring this event or any weekend for a visit and a train ride. Come on out to Campo and see theimprovements!

Sincerely,

Diana HyattPresident

,. ,/ ,/tit "(

Att. A, AI 9, 5/11/17

A-13

r ltem No. 5a

San Diego and Arizona Eastern (SD&AE)Railway Company

Board of Directors Meeting

April 18,2017

SUBJECT:

REPORT ON THE DESERT LINE

RECOMMENDATION:

That the SD&AE Board of Directors receive a report for information.

Budoet lmpact

None.

DISCUSSION:

A report was not submitted in time for the mail-out.

Attachment: To be provided at the meeting.

Att. A, AI 9, 5/11/17

A-14

San Diego and Arizona Eastern (SD&AE)Railway Company

Board of Directors Meeting

April18,2017

SUBJECT:

IDENTIFICATION AND DISPOSAL OF ABANDONED PERSONAL PROPERTY /ROLLING STOCK ON THE DESERT LINE

RECOMMENDATION:

That the SD&AE Board of Directors authorize staff to take all necessary and appropriatesteps to identify and remove abandoned property on the Desert Line.

Budoet lmpact

None.

DISCUSSION:

The Desert Line lease with Pacific lmperial Railroad, lnc. (PlR) was executed in December2012. Since that time, MTS staff and representatives of PlR, Baja California Railroad(BJRR), and Pacific Southwest Railroad Museum (PSRM) have identified several piecesof rolling stock that are stored throughout the Desert Line (see Attachment A).

ln order to accommodate the upcoming repair and renewed operation of the Desert Line,any equipment that is not necessary for Desert Line freight operations needs to beremoved. MTS staff could not locate any SD&AE records identifying the owners of therolling stock. There are no agreements with SD&AE allowing the property to be stored onthe Desert Line. Some of the rolling stock may be owned by the prior Desert Line tenant,Carrizo Gorge Railway Co. (CZRY) or its individual shareholders, officers, or clients.Therefore, MTS staff proposes that a Notice of Right to Reclaim Abandoned Property besent to all individuals MTS can reasonably locate that might claim an ownership interestin the listed rolling stock.

Staff proposes the following schedule and process:

April2l: Mail Notice to Service ListMay 18: Deadline to Submit Claim/Proof of OwnershipJune 1: Deadline to remove rolling stock from SD&AE property

Agenda ltem No, 5b

Att. A, AI 9, 5/11/17

A-15

Rolling stock that is capable of being removed by truck must be removed by truck.SD&AE does not agree to grant permission for rolling stock to be removed by rail.

lf the only safe method for removal of a claimant's rolling stock is by rail, then theclaimant must present a plan for removal to SD&AE by the June 1 ,2017, deadline. lfSD&AE agrees, in its sole discretion, that the onlv safe removal option for the rollingstock is by rail, SD&AE will work with the claimant to accommodate the removal, at,theclaimant's sole cost and expense, at a time when the railroad is in a sufficient state ofrepair to allow the movement of the rolling stock by rail.

Property that is not promptly claimed and removed will then be ídentified for disposal orreuse as follows: (1) donated to a nonprofit that preserves historic railroad rolling stock;(2) incorporated into SD&AE's official rolling stock inventory and used for freight railroadoperations on the Desert Line; or (3) disposed of pursuant to Section 1993.07 of the CivilCode.

lf the property is sold at a public auction pursuant to Section 1993.07 of the Civil Code, itwill be done so after notice of the sale has been given by publication. After the property issold, and the cost of storage, advertising, and sale is deducted, the remaining money, ifany, will be paid over to the county. The undisputed owner may claim the remainingmoney (upon proof of ownership) at any time within one year after the county receivesthe money.

Attachment: A. Desert Line Rolling Stock Inventory

Att. A, AI 9, 5/11/17

A-16

Attachment A

Desert Line - Rolling Stock lnventoryRailroad rolling stock inventory along the Desert Line between Division and Dos Cabesas:

AT CAMPO

House Track

[Odi¿Nüiñbe ,iì

czRY 8758

SP tank car

SDAE box cars (2)

iÌDescriptio-r 'r :'

AT JACUMBA

bi-level qallerv passenqer car, ex-Chicaqo Metra

formerly at Ocotillo for decades

Car Numbev i'. '' ':.; ,,

wcRc 100

WCRC 101

acquired from SDTI

WCRC 102

UP 669

ex-SP 1465

TMRXl

DescriptEMD F7A locomotive

CZRY 1 195

EMD F7B locomotive

Amtrak 4462

ion

EMD F7A locomotive

:,it:,,I

CZRY MOWOI

EMD GP 40M-2 locomotive

GW 39500

:,j i:j

SP tank car

ALCO S-2 locomotive

ïO'trn eïé h i piC I ã ¡ ri,l#

steel, wide-vision cupola caboose

sP 1335

owned by SDAE

NOT IN DISPUTE

baqqaqe car, ex-NYC

chair car, ex-ATSF 2960

sP 8169?/1693?

owned by PSRM

NOT IN DISPUTE

heavv dutv

Ford hi-rail boom truck

fire suppression car located at tunnel 16 for decades

SP tank car

utilitv flat car (sittinq in dirt)

circa late 1870's-early 1880's wooden passenger

coach, no trucks

SDAE box cars (2)

,,Ownershio Claimlêtr

circa late 187O's-early 1880's wooden passenger

coach, no trucks

lnventory created by Pacific Southwest Railway Museum (PSRM)volunteers circa Feb/Mar2016

formerly at Ocotillo for decades

acquired from SDTI

owned by SDAE

NOT IN DISPUTE

owned by SDAE

NOT IN DISPUTE

owned by SDAE

NOT IN DISPUTE

owned by SDAE

NOT IN DISPUTE

owned by PSRM

NOT IN DISPUTE

Att. A, AI 9, 5/11/17

A-17

AT TITUS SIDING

Gäi.NùmbêrUP

6992/SWPC65

uP 17649

CZRY 2O9B

Attachment A

Desert Line - Rolling Stock lnventory

SP?

Descriptionsteel hopper car

AT DUBBERS SPUR

steel hopper car

Car Number rt, ;

86' steel flat car

czRY 7773

steel flat car, built l948Jriction bearing

czRY 7779

CZRY 8728

CZRY 7774

CZRY 7784sP 43969

Descriptibi-level qallery passenqer car, ex-Chicaqo Metra

.'TEMPORARY'' SPUR AT WE TUNNEL 8

bi-level qa

t:Ì:

bi-levelqa

on

bi-level qa

Car Number r'

r Où¡féis h i p.C la i ñí,É, :

bi-level qa

TPHX 801

lery passenqer car, ex-Chicaqo Metra

flat car with tunnel inspection platform

lery passenqer car, ex-Chicaqo Metra

TPHX 817

lery passenqer car, ex-Chicaqo MetralerV passenqer car, ex-Chicaqo Metra

TPHX 835

believed to be

owned by SDAE

NOT IN DISPUTE

TUNNEL 16 SPUR (E/E Goat Canyon Trestle)

Descriptipassenger car, former Canadian commuter car

Car NumberATSF 7704,I

passenger car, former Canadian commuter car

on

passenger car, former Canadian commuter car

Ownership Claim

lnventory created by Pacific Southwest Railway Museum (PSRM) volunteers circa Feb/M ar 2016

Descriptiballast car

owned by SDAE

NOT IN DISPUTE

on

Ownership Claim ,

Ownership Claim,i.:

Att. A, AI 9, 5/11/17

A-18

SUBJECT:

SUMMARY OF SD&AE DOCUMENTS ISSUED SINCE JANUARY 17,2017

RECOMMENDATION:

That the SD&AE Railway Company Board of Directors receive a report for information.

Budqet lmpact

None.

DISCUSSION:

Since the January 17,2017, SD&AE Railway Company Board of Directors meeting, thedocuments described below have been processed by staff.

Agenda

San Diego and Arizona Eastern (SD&AE)Railway Company

Board of Directors Meeting

April18,2017

^Item No, Oa

5200-16-643: Right of Entry Permit to the Earth Mechanics, lnc. to performgeotechnical studies for the Bayshore Bikeway Segment 8B in Chula Vista.

5200-17-644: Right of Entry Permit to San Diego Charter Co. for running shuttleservice from the Spring Street Trolley Station.

5200-17-645: Right of Entry Permit to Park N Play for running shuttle servicefrom the Spring Street Trolley Station.

3200-17-654: Right of Entry Permit to SC Valley Engineering, lnc. to performstorm drainage repair in the City of El Cajon.

5200-17-655: Right of Entry Permit to Vailston Company, Inc. for sidewalk repairin the City of San Diego along the Orange Line in the Encanto neighborhood.

Att. A, AI 9, 5/11/17

A-19

San Diego and Arizona Eastern (SD&AE)Railway Company

Board of DireOtors Meeting

April 18,2017

SUBJECT:

EASEMENT FOR STREET IMPROVEMENTS FOR THE CITY OF LA MESA

RECOMMENDATION:

That the SD&AE Railway Company Board of Directors approve issuing an easement tothe City of La Mesa for sidewalk and retaining-wall improvements along Spring Street justsouth of lnterstate I (l-8).

Budqet lmpact

The easement will be issued for no fee, MTS and the City of La Mesa have a reciprocqlfee-waiver agreement in place.

DISCUSSION:

The City of La Mesa is improving Spring Street in the area just south of l-8. As part of theimprovements, the City of La Mesa plans to construct a sidewalk and retaining wall onthe west side of Spring Street just north of the trolley grade crossings. After researchingthe entitlements granted for previous freeway and local street improvements, staffcouldn't find any agreement that would cover the work. Staff determined that to be on thesafe side, SD&AE should issue an easement to cover the intended work.

Attachment A is an exhibit showing the area which would be covered by the neweasement. Attachment B is the plat for the easement area totaling 3,276 square feet(0.08 acres),

Attachments: A. Easement Vicinity MapB. Easement Plat

Agenda ltem No. 6b

Att. A, AI 9, 5/11/17

A-20

i'Lì-/ __ -_\

.+g)c)53of

e---s\

LEGEND

IMPROVEMENTS WTHIN MTS ROIV NEEDING NEW AGREEMENT

IMPROVEMENTS WIIHIN MTS ROW W'IH EXISÎNG EASEMENTS

--. )-4-------

. JAI'I'AfiY 2O7

NOHT.II SFFING STREET PHASE II _ PEDESTRIÀT.I RruI-NORO CROSSII{GIEW EASEi ENTE¡

KimleyDHorn

Att. A, AI 9, 5/11/17

A-21

UNE NO.

LINE TABI.E

L1

DIRECTIOl{

s 7552'50' W

EXHIBIT ''B''

LtrìIGTH

1.04'

*?,

eV

\

A15

AN EASEMENT FOR IHE CONSTRUCIION, MAINTENANCE,

AND USE OF A STREFT N FAVOR OF THE CITY OF

r-A MESA REC.7/nflg4€ AS DoC. N0. 72S96 0.R.

Attachment B

Nr.p.o.s.

WruZ PUBUC IMPROI/EilIENT EASEIIENTAREA = J,276 SQ. FÍ.

POINT OF COMMENCEMENT

TRUE POINT OF BEGINNING

CON'IROL POINT PER ROS 1ô575

Metropollton Tronsit S¡ætem1255 lmpcrlol Avcnuc, Suite 1fi)0, Son Dlcgo. CÀ 92101-7490

*drçi.È'a

\t2o-

mmnB

Att. A, AI 9, 5/11/17

A-22

San Diego and Arizona Eastern (SD&AE)Railway Company

Board of Directors Meeting

April 18,2017

SUBJECT:

LICENSES FOR AERIAL FIBER EAST OF CAMPO

RECOMMENDATION:

That the SD&AE Railway Company Board of Directors approve licenses for aerial fibercrossing within the SD&AE right-of-way east of Campo.

Budqet lmpact

License fees will be deposited to the SD&AE budget.

DISCUSSION:

AT&T is the successor in interest to several existing aerial telephone encroachments toSD&AE right-of-way east of Campo. The first is at Sheridan Road just east of the MotorTransport Museum, and the second is at La Posta Road. AT&T determined thatadditional communication capacity is needed in the area and proposes to overlash newaerial fiber-optic cables to the existing crossings.

Attachments A and B are exhibits of the locations for the new facilities at Sheridan Roadand La Posta Road, respectively. New licenses will be issued to add the new facilitiesand replace the existing agreements.

Attachments: A. Sheridan RoadB. La Posta Road

Agenda ltem No.

Att. A, AI 9, 5/11/17

A-23

x Qcmvcri - ûs.k<t

:| Ðhnp5-cf6.ns gcir,tx.rnpp.apprior¡o... Ðd.¡nk prnOncaop fiAddtotsprcêgæk¡.rt¡ ¡lsdk.osk " 1!ì . $l - rr $ - p¡9". . loob. e-

Attachment A

Att. A, AI 9, 5/11/17

A-24

tÍ5+rsl4

Attachment B

Att. A, AI 9, 5/11/17

A-25

Agenda ltem No. 6dSan Diego and Arizona Eastern (SD&AE)

Railway CompanyBoard of Directors Meeting

April 18,2017

SUBJECT:

CAMPO INDIAN BAND RENEWABLE ENERGY PROJECT

RECOMMENDATION:

That the SD&AE Railway Company Board of Directors receive a report and provide directionto staff.

Budqet lmpact

None at this time.

DISCUSSION:

Archer Cleantech lnc. (Archer) and the Campo Band of Mission lndians (Campo) havepartnered to develop a new 90 megawatt (MW) renewable-energy project on Campo triballands in the east part of San Diego County east of Campo. A key component of the project isa new 138 kV transmission line required to deliver the energy generated by the project tomarket using San Diego Gas and Electric (SDG&E) electric lines. The new transmission linewould be optimally routed on the existing Desert Line right-of-way. A similar proposalwasbrought to the SD&AE Board in 2012. That project did not move fonruard.

Archer is a privately held Canadian utility-scale renewable-energy developer firm. Archerand its partner Campo are developing a 90 MW renewable energy project on Campo lands.The renewable-energy project will include a 50 MW wind farm and a 40 MW solar PV farm,which will all collect into a new substation located on Campo lands and also connect into thesouthern California high-voltage 500 kV collection system for use within the state ofCalifornia.

Campo, as a cooperating agency, applied to the Bureau of lndian Affairs (BlA) for theapproval of a lease agreement in 2013 and will be pursuing a similar lease agreementbetween Campo and Archer to develop the proposed Campo Wind/Solar Project (to benamed later). Allfacilities proposed through the lease would be contained within the Campolands. Attachment A is an exhibit showing the location of the project and potential utility-lineroute along the Desert Line.

Archer and Campo request to engage in discussions and negotiations of the terms for aRight-of-Way Use Agreement. The Agreement would set out access and commercialtermsenabling a new 138 kV power transmission line to be built on the SDMTS railright-of-way and operated over a 20- to 2}-year period following construction completion.Depending upon SD&AE Board member direction to staff, this item would be fonruarded tothe MTS Board for further approval as the project concept is further determined.

Attachment: A. Vicinity Map

Att. A, AI 9, 5/11/17

A-26

Attachment A

The map below shows the new 138 transmission line routing across the SDMTS rail right-of-way.

Att. A, AI 9, 5/11/17

A-27

Agenda Item No. 10

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM BOARD OF DIRECTORS

May 11, 2017

SUBJECT:

COURTHOUSE STATION CONSTRUCTION – CONTRACT AWARD RECOMMENDATION:

That the San Diego Metropolitan Transit System (MTS) Board of Directors authorize the Chief Executive Officer (CEO) to execute MTS Doc. Nos. PWL222.0-17 (in substantially the same format as Attachment A) and PWL232.0-17 (in substantially the same format as Attachment B) with West Coast General/HMS Construction, Inc., a Joint Venture, for construction of the Orange Line Courthouse Station. Budget Impact

The value of PWL222.0-17 is $6,097,748.36, and PWL232.0-17 is $397,143.46, for a project total not to exceed $6,494,891.82. This is funded under the MTS Capital Improvement Project budget account 2004007503.

DISCUSSION:

On March 12, 2015, the MTS Board of Directors approved Resolution No. 15-5 authorizing the CEO to submit an application for a proposed downtown Courthouse Station Project to provide expanded capacity on the MTS trolley system. At that time, the project was in the conceptual development phase only. As a result of the future Mid-Coast Trolley operations plan, and the necessity to relieve trolley congestion at the Santa Fe Depot station, the downtown Courthouse Station project will relocate the existing westerly terminus of the Orange Line from Santa Fe Depot to a new station within the C Street corridor between State Street and Union Street.

-2-

The construction work includes new track, signaling, catenary, station platform, underground utilities, shelters, VMS signs, security cameras, curb extensions, traffic signaling, drainage upgrades, curb and gutter, sidewalk, and signage.

MTS Policy No. 52, “Procurement of Goods and Services”, requires a formal competitive bid process for procurements exceeding $100,000. On January 10, 2017 MTS issued a Notice Requesting Prequalification Packages under MTS No. G1986.0-17 to prequalify prime contractors experienced in site work, trackwork, overhead catenary system and railroad signaling. Seven (7) firms submitted prequalification packages: Shimmick Construction, Hazard Construction, Kiewit Infrastructure West, West Coast General Corporation, Balfour Beatty Infrastructure, Inc., Mass Electric and HMS Construction, Inc. All with the exception of Hazard Construction were prequalified. After prequalification, on February 14, 2017 MTS issued an Invitation for Bids (IFB) for construction of the station. The IFB identified two schedules:

Schedule A (Base Bid)

Schedule B (work North of C Street)

One (1) bid was received on the due date of April 14, 2017 from West Coast General Corporation/HMS Construction, Inc., a Joint Venture, two of the firms on the pre-qualified list. The project will be completed within 210 days from Notice to Proceed date. A comparison to the engineer’s estimate is as follows:

Bid Engineer’s Estimate MTS Savings

Schedule A (PWL222.0-17)

$6,097,748.36 $6,383,854.80 $286,106.44

Schedule B (PWL232.0-17)

$397,143.46 $394,153.20 $(2,990.26)

Total $6,494,891.82 $6,778,008.00 $283,116.18

Therefore, staff recommends that the San Diego MTS Board of Directors authorize the CEO to execute MTS Doc. Nos. PWL222.0-17 (in substantially the same format as Attachment A) and PWL232.0-17 (in substantially the same format as Attachment B), with West Coast General Corporation / HMS Construction, Inc., a Joint Venture for construction of the new Orange Line Courthouse Station.

/s/ Paul C. Jablonski__________________ Paul C. Jablonski Chief Executive Officer Key Staff Contact: Sharon Cooney, 619.557.4513, Sharon.Cooney@sdmts.com Attachments: A. Draft MTS Doc. No. PWL222.0-17

B. Draft MTS Doc. No. PWL232.0-17 C. Cost Summary

Att. A, AI 10, 5/11/17

A-1

STANDARD CONSTRUCTION AGREEMENT PWL222.0-17 CONTRACT NUMBER FILE NUMBER(S) THIS AGREEMENT is entered into this ______ day of _______________ 2017, in the State of California by and between San Diego Metropolitan Transit System (“MTS”), a California public agency, and the following, hereinafter referred to as "Contractor": Name: West Coast General Corporation/HMS Construction, Inc. Address: 13700 Stowe Drive, Ste. 100___

Poway, CA 92064 Form of Business: Joint Venture (Corporation, partnership, sole proprietor, etc.) Telephone: (619) 561-4200 Email Address: ddavey@wcgcorp.com__________ Authorized person to sign contracts: Dave E. Davey Managing Partner__________ Name Title

The specified Contract Documents are part of this Agreement. The Contractor agrees to furnish to MTS services and materials, as follows: SCHEDULE A (Base Bid) - Contractor shall furnish all necessary management, supervision, labor, materials, tools, supplies, equipment, services, and testing as specified in the Scope of Work (attached as Exhibit A), West Coast General Corporation/HMS Construction, Inc., a Joint Venture’s bid document dated April 14, 2017 (attached as Exhibit B) and the Standard Construction Agreement and Special Conditions (attached as Exhibit C). The term of this Agreement shall commence as specified in the NTP and shall be completed in not less than two hundred and ten (210) days for “in-line Light Rail Vehicle (LRV) trackwork, and new LRV station buildout along C Street between Front and Columbia Streets in the downtown portion of the City of San Diego, CA; track construction including removal of existing track, special trackwork fabrication and construction and installation of “Iron Horse” track system; modification to overhead catenary system including removal and replacement of catenary poles and installation of new catenary poles including foundations; modification to signaling and communication systems; roadwork improvements including paving, curb and gutter, sidewalk and drainage facilities; LRV station work and station amenities including shelter installation, signage and signage structures fabrication and installation, and decorative paving; traffic signal modifications, traffic control including traffic signage, striping and marking; planting and plant establishment work; and performing all other work necessary to complete the work, including receipt and installation of owner furnished material and procuring all other materials.” This work excludes Schedule B scope of work for improvements north of C Street, between State and Union St. Total contract amount shall not exceed $6,097,748.36, without express written consent of MTS. SAN DIEGO METROPOLITAN TRANSIT SYSTEM CONTRACTOR AUTHORIZATION By: Firm: West Coast General Corporation/HMS

Construction, Inc., a Joint Venture Chief Executive Officer Approved as to form: By: Signature By: Office of General Counsel Title:

AMOUNT ENCUMBERED BUDGET ITEM FISCAL YEAR $6,097,748.36 2004007503 2017-2018 By: Chief Financial Officer Date ( total pages, each bearing contract number)

Att. B, AI 10, 5/11/17

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STANDARD CONSTRUCTION AGREEMENT PWL232.0-17 CONTRACT NUMBER FILE NUMBER(S) THIS AGREEMENT is entered into this ______ day of _______________ 2017, in the State of California by and between San Diego Metropolitan Transit System (“MTS”), a California public agency, and the following, hereinafter referred to as "Contractor": Name: West Coast General Corporation/HMS Construction, Inc. Address: 13700 Stowe Drive, Ste. 100___

Poway, CA 92064 Form of Business: Joint Venture (Corporation, partnership, sole proprietor, etc.) Telephone: (619) 561-4200 Email Address: ddavey@wcgcorp.com__________ Authorized person to sign contracts: Dave E. Davey Managing Partner__________ Name Title

The specified Contract Documents are part of this Agreement. The Contractor agrees to furnish to MTS services and materials, as follows: SCHEDULE B (Work North of C Street) - Contractor shall furnish all necessary management, supervision, labor, materials, tools, supplies, equipment, services, and testing as specified in the Scope of Work (attached as Exhibit A), West Coast General Corporation/HMS Construction, Inc., a Joint Venture’s bid document dated April 14, 2017 (attached as Exhibit B) and the Standard Construction Agreement and Special Conditions (attached as Exhibit C). The term of this Agreement shall commence as specified in the NTP and shall be completed in not less than sixty (60) calendar days for work north of C Street, between State and Union Street, as shown on the plans for curb extensions, roadwork improvements including paving, curb and gutter, sidewalk and drainage facilities; signage and signage structures fabrication and installation, traffic signal modifications, traffic control including traffic signage, striping and marking; planting modifications, and performing all other work necessary to complete the work, including procuring all materials. Total contract amount shall not exceed $397,143.46, without express written consent of MTS. SAN DIEGO METROPOLITAN TRANSIT SYSTEM CONTRACTOR AUTHORIZATION By: Firm: West Coast General Corporation/HMS

Construction, Inc., a Joint Venture Chief Executive Officer Approved as to form: By: Signature By: Office of General Counsel Title:

AMOUNT ENCUMBERED BUDGET ITEM FISCAL YEAR $397,143.46 2004007503 2017-2018 By: Chief Financial Officer Date ( total pages, each bearing contract number)

Att. C, AI 10, 5/11/17

TOTALSubtotal General 702,481.00$

Subtotal Site Work 379,703.40$

Subtotal Exterior Improvements 817,546.36$

Subtotal Drainage Facilities 64,002.00$

Subtotal Site Improvements 276,786.00$

Subtotal Signage 11,745.00$

Subtotal Trackwork 1,521,597.60$

Subtotal Special Structures 57,728.00$

Subtotal Electrical and Communication 361,464.00$

Subtotal Overhead Contact System 686,281.00$

Subtotal Transportation Signaling and Control 1,173,613.00$

Subtotal Plant Establishment Work 4,800.00$

Subtotal Bonds 40,001.00$

Subtotal 6,097,748.36

Subtotal General 26,544.00$

Subtotal Site Work 32,459.46$

Subtotal Site Improvements 94,548.00$

Subtotal Signage 1,350.00$

Subtotal Drainage Facilities 2,448.00$

Subtotal Transportation Signaling and Control 236,793.00$

Subtotal Bonds 3,001.00$

Subtotal 397,143.46

OVERALL TOTAL 6,494,891.82

SCHEDULE A (BASE BID) - MTS DOC. NO. PWL222.0-17

SCHEDULE B (WORK NORTH OF C STREET) - PWL232.0-17

ATTACHMENT C

West Coast General Corporation/HMS Construction, Inc., A Joint VentureORANGE LINE COURTHOUSE STATION

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Agenda Item No. 11

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM BOARD OF DIRECTORS May 11, 2017

SUBJECT:

INVESTMENT REPORT – MARCH 2017 INFORMATIONAL ONLY

Budget Impact

None.

DISCUSSION:

Attachment A comprises a report of the San Diego Metropolitan Transit System (MTS) investments as of March 31, 2017. The combined total of all investments has decreased month to month from $118.5 million to $108.0 million. This $10.5 million decrease is attributable to $4.8 million in capital expenditures, as well as normal timing differences in other payments and receipts.

The first column provides details about investments restricted for capital improvement projects.

The second column, unrestricted investments, reports the working capital for MTS operations allowing payments for employee payroll and vendors’ goods and services.

/s/ Paul C. Jablonski Paul C. Jablonski Chief Executive Officer Key Staff Contact: Sharon Cooney, 619.557.4513, Sharon.Cooney@sdmts.com

Attachment: A. Investment Report for March 2017

Att. A, AI 11, 5/11/17

Restricted Unrestricted TotalAverage rate of

returnCash and Cash Equivalents

JP Morgan Chase - concentration account - 20,162,667 20,162,667 0.00%

Total Cash and Cash Equivalents - 20,162,667 20,162,667

Cash - Restricted for Capital Support

US Bank - retention trust account 2,303,606 - 2,303,606 N/A*San Diego County Investment PoolProposition 1B TSGP grant funds 5,047,904 605,416 5,653,320

Total Cash - Restricted for Capital Support 7,351,510 605,416 7,956,926

Investments - Working Capital

Local Agency Investment Fund (LAIF) 11,323,891 68,546,125 79,870,016 0.821%

Total Investments - Working Capital 11,323,891 68,546,125 79,870,016

Total cash and investments 18,675,401$ 89,314,208$ 107,989,609$

San Diego Metropolitan Transit SystemInvestment Report

March 31, 2017

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Agenda Item No. 12

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM BOARD OF DIRECTORS

May 11, 2017

SUBJECT: ORANGE LINE TRACK IMPROVEMENTS – ADD ALTERNATE (OPTIONAL ITEMS) AWARD

AGENDA ITEM WILL BE

PROVIDED AT EXECUTIVE COMMITTEE

MEETING

Agenda Item No. 13

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM BOARD OF DIRECTORS

May 11, 2017

SUBJECT:

PAINT SERVICES FOR SAN DIEGO TRANSIT CORPORATION (SDTC) AND SAN DIEGO TROLLEY, INC. (SDTI) - CONTRACT AWARD

RECOMMENDATION:

That the San Diego Metropolitan Transit System (MTS) Board of Directors authorize the Chief Executive Officer (CEO) to execute MTS Doc. No. PWL216.0-17 (in substantially the same format as Attachment A) with Anemos Enterprises Inc. for the provision of paint services, materials, equipment and supplies at MTS’s Trolley Yard Building B and the Kearny Mesa Division (KMD).

Budget Impact

The total value of this agreement will not exceed $107,350.00 and will be funded through MTS cost center 380016-545400 for fiscal year (FY) 2017.

DISCUSSION:

SDTI (Group A): MTS Rail is requesting to repaint the exterior of the Facilities/Stores/Revenue building located at 1341 Commercial St., San Diego, CA 92113 (Building B). This building has not been painted for 28 years and is in need of painting. All exterior doors, railings and window frames will be painted. SDTC (Group B): The KMD bus yard opened in 1989. It has been in service since then and has never been repainted. The trim, building numbers, doors and door frames are fading and peeling due to exposure from surface rust. Aside from the visual improvements to

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maintain MTS facility standards, repainting is also required to avoid further damage from surface rust. Included in this project is the repainting of the wrought iron surrounding the KMD parking garage. It has significant surface rust and also requires professional surface preparation and complete repainting. Postponing this maintenance work will ultimately increase costs in the long term as the rusted areas will only deteriorate further. MTS Policy No. 52, “Procurement of Goods and Services”, requires a formal competitive process for procurements exceeding $100,000.

An Invitation for Bids (IFB) was issued on February 28, 2017 for Paint Services. Four (4) bids were received by the due date of April 4, 2017 as follows:

PAINT SERVICES

COMPANY NAME

BID AMOUNT GROUP A

BID AMOUNT GROUP B

TOTAL MEETS BUY

AMERICA REQUIREMENTS

Anemos $39,550.00 $67,800.00 $107,350.00 Y

Color New $46,000.00 $80,000.00 Y

Industrial Coating $47,375.00 $137,294.00 Y

K2 Painting $76,650.00 $194,750.00 Y

MTS ICE $61,000.00 $61,707.00 $122,707.00

After conducting price reasonability analysis and reviewing all bids received for responsiveness, Anemos was found to be the lowest responsive and responsible bidder at $107,350.00. In addition, by comparison to MTS Independent Cost Estimate (ICE), the Anemos bid was determined to be fair and reasonable.

Therefore, staff recommends that the MTS Board of Directors authorize the CEO to execute MTS Doc. No. PWL216.0-17 (in substantially the same format as Attachment A), with Anemos, Inc. for Paint Services at SDTI and SDTC at MTS’s Building B and the Kearny Mesa Division (KMD).

/s/ Paul C. Jablonski_______________ Paul C. Jablonski Chief Executive Officer Key Staff Contact: Sharon Cooney, 619.557.4513, Sharon.Cooney@sdmts.com Attachment: A. Draft MTS Doc. No. PWL216.0-17

Att. A, AI 13, 5/11/17

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SECTION 4.0 SAMPLE OF STANDARD CONSTRUCTION AGREEMENT AND GENERAL CONDITIONS

STANDARD CONSTRUCTION AGREEMENT FOR

PAINT SERVICES FOR SAN DIEGO TRANSIT & SAN DIEGO TROLLEY

THIS AGREEMENT is entered into this ______ day of _______________ 2017, in the State of California by and between San Diego Metropolitan Transit System (“MTS”), a California public agency, and the following, hereinafter referred to as "Contractor": Name: Anemos Enterprises, Inc. Address: 12464 Brickellia St., San Diego, CA 92129 Form of Business: Corporation ______________ (Corporation, Partnership, Sole Proprietor, etc.) Telephone: Email Address: Authorized person to sign contracts: Demetrios Capous Project Manager Name Title

The specified Contract Documents are part of this Agreement. The Contractor agrees to furnish to MTS services and materials, as follows: Contractor shall furnish all necessary management, supervision, labor, materials, tools, supplies, equipment, plant, services, engineering, testing and/or any other act or thing required to diligently and fully perform and complete the Project as specified in the Scope of Work (Exhibit A), Bid Proposal (Exhibit B), and in accordance with the Standard Construction Agreement and Special Conditions (Exhibit C), and Federal Requirements (Exhibit D). SCOPE OF WORK. Contractor, for and in consideration of the payment to be made to Contractor as

hereinafter provided, shall furnish all plant, labor, technical and professional services, supervision, materials and equipment, other than such materials and equipment as may be specified to be furnished by MTS, and perform all operations necessary to complete the Work in strict conformance with the Contract Documents (defined below) for the following public work of improvement:

PAINT SERVICES FOR SAN DIEGO TRANSIT (KMD) & SAN DIEGO TROLLEY (BUILDING B)

Contractor is an independent contractor and not an agent of MTS. The Contractor and its surety shall be liable to MTS for any damages arising as a result of the Contractor’s failure to comply with this obligation.

CONTRACT TIME. Time is of the essence in the performance of the Work. The Work shall be commenced by the date stated in MTS’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within Sixty (60) Calendar days for Group A and Ninety (90) for Group B days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the Contract Time is adequate and reasonable to complete the Work.

PWL216.0-17

CONTRACT NUMBER

FILE/PO NUMBER(S)

Att. A, AI 13, 5/11/17

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CONTRACT PRICE. MTS shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of $107,350.00 Payment shall be made as set forth in the General Conditions.

COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following:

Invitation for Bids (IFB) Information and Instructions for Bidders Contractor's Bid Forms Bid Bond Designation of Subcontractors Designation of Other Third Party Contractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor Registration Certification Performance Bond Payment (Labor and Materials) Bond General Conditions Special Provisions (or Special Conditions) Federal Requirements (Federal Transit Administration) Technical Specifications prepared by ., dated _ Standard Specifications (Excluding sections 1-9 in their entirety) Addenda Plans prepared by ________________, dated ____________ Change Orders as executed by MTS

The Contractor shall complete the Work in strict accordance with all of the Contract Documents.

This Contract shall supersede any prior agreement of the parties.

PROVISIONS REQUIRED BY LAW. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of the California Labor Code applicable to this Project.

INDEMNIFICATION. Contractor shall provide indemnification as set forth in the General Conditions.

PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at MTS’s Administrative Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site

Att. A, AI 13, 5/11/17

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SAN DIEGO METROPOLITAN TRANSIT SYSTEM CONTRACTOR AUTHORIZATION By: Firm: Chief Executive Officer Approved as to form: By: Signature By: Office of General Counsel Title:

AMOUNT ENCUMBERED BUDGET ITEM FISCAL YEAR $ 107,350.00 380016- 545400 By: Chief Financial Officer Date ( total pages, each bearing contract number) SA-CONSTRUCTION (REV 1-17)

Agenda Item No. 14

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM BOARD OF DIRECTORS

May 11, 2017

SUBJECT:

MOBILE ON BOARD VIDEO SURVEILLANCE SYSTEM FOR THE MINIBUS AND PARATRANSIT FLEETS - CONTRACT AMENDMENT

RECOMMENDATION:

That the San Diego Metropolitan Transit System (MTS) Board of Directors authorize the Chief Executive Officer (CEO) to execute Amendment No. 9 to MTS Doc. No. B0521.0-09 (in substantially the same format as Attachment A), with Apollo Video Technology (Apollo) for the reallocation of $281,856.00 originally encumbered and included under Amendment No. 8 as Optional Items to the original agreement, for in-scope On Board Video Surveillance System (OBVSS) installation related services of the minibus and paratransit fleets.

Budget Impact

The aggregate expense will not increase from the previous amended total of $6,981,388.53, inclusive of all Amendments to date. This project will be funded by Capital Improvement Project (CIP) 1007001504 CCTV for ADA Buses.

DISCUSSION:

On July 15, 2010, the MTS Board authorized the CEO to execute MTS Doc No. B0521.0-09 with Apollo to procure, install and provide on board video surveillance equipment, which would support back-office systems and wireless network equipment, for MTS buses.

As a result, the OBVSS project has provided significant support to staff in regards to investigating customer complaints, tracking vehicle accidents, and assisting in litigation of criminal cases claims/lawsuits. Due to the resulting effectiveness of the system, its use has been extended to both MTS fixed bus fleets as well as the paratransit and minibus fleets.

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The last action taken under Board approved Amendment No. 8, revised the overall capacity of the Agreement from $4,790,606.26 to $6,981,388.53 and included “Optional Items” identified in Table 1 below. However, the Optional Items are no longer required under the Apollo’s contract, MTS Doc. No B0521.0-09, as the support and warranty services for the OBVSS are included under a separate, competitively awarded OBVSS maintenance contract. As such, approval of this amendment will reallocate the capacity associated with the services identified in Table 1, totaling $281,856.00, to the CIP project to support in-scope OBVSS installation related services of the minibus and paratransit fleets. The re-designation of these funds will provide contract capacity for various contract services, including transferring existing cameras from buses that are being retired to incoming new fleet.

Table 1

Optional Items- Per Amendment No. 8

Onsite Support YR 3 $48,792.00

Extended Equipment Warranty YR 4 $40,950.00

Onsite Support YR 4 $48,972.00

Extended Equipment Warranty YR 5 $40,950.00

Onsite Support YR 5 $48,972.00

ViMSoftware Maintenance YR 4 $26,520.00

ViMSoftware Maintenance YR 5 $26,520.00

Options Total $281,856.00

Therefore, staff recommends that the MTS Board of Directors authorize the CEO to execute Amendment No. 9 to MTS Doc. No. B0521.0-09 (in substantially the same format as Attachment A), with Apollo for the reallocation of $281,856.00 originally encumbered and included under Amendment No. 8 as Optional Items to the original agreement, for in-scope OBVSS installation related services of the minibus and paratransit fleets.

/s/ Paul C. Jablonski_____________ Paul C. Jablonski Chief Executive Officer Key Staff Contact: Sharon Cooney, 619.557.4513, Sharon.Cooney@sdmts.com Attachment: A. Draft Amendment No. 9 to MTS Doc. No. B0521.0-09

Att. A, AI 14, 5/11/17

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May 11, 2017 MTS Doc. No. B0521.9-09 Apollo Video Technology Mr. Rodell Notbohm General Manager 24000 35th Ave SE Bothell, WA 98021 Subject: AMENDMENT NO. 9 TO MTS DOC. NO. B0521.0-09; MOBILE ON BOARD VIDEO

SURVEILLANCE SYSTEM (OBVSS) Dear Mr. Notbohm: This shall serve as Amendment No. 9 to our agreement for the mobile on board video surveillance system as further described below. STATEMENT OF WORK There shall be no changes to the statement of work provision of this contract. SCHEDULE There shall be no changes to the schedule provision of this contract. PAYMENT MTS elects to reallocate and exercise Optional Item capacities authorized under Amendment No. 8, in the amount of $281,856.00, to support installation OBVSS related services. As a result of this Amendment, the total contract value will remain at $6,428,080.50. Please sign and return the copy marked “original” to the Contracts Specialist at MTS. All other terms and conditions shall remain the same and in effect. Retain the other copy for your records. Sincerely, Agreed: Paul C. Jablonski Rodell Notbohm Chief Executive Officer General Manager / Apollo Video Technology Date:

Agenda Item No. 15

MEETING OF THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM BOARD OF DIRECTORS

May 11, 2017

SUBJECT:

COURTHOUSE STATION – MOTORIZED SWITCH MACHINES AND CONTROLERS

AGENDA ITEM WILL BE PROVIDED AT

EXECUTIVE COMMITTEE MEETING